ri922 

M3I 


THE  VALUE  OF  PRICE  STATEMENTS  IN  ADVERTISING 


BY 

MERTEN  JOSEPH  MANDEVILLE 

B.  S.,  University  of  Illinois,  1921 


THESIS 

SUBMITTED  IN  PARTIAL  FULFILLMENT  OF  THE  REQUIREMENTS 
FOR  THE  DEGREE  OF  MASTER  OF  SCIENCE  IN  BUSINESS 
ORGANIZATION  AND  OPERATION  IN  THE  GRADUATE 
SCHOOL  OF  THE  UNIVERSITY  OF  ILLINOIS, 

1922 


URBANA,  ILLINOIS 


Digitized  by  the  Internet  Archive 
in  2015 


https://archive.org/details/valueofpricestatOOmand 


/3  <7a  ? 3 ^ Af> 


1922 
M 3 I 


UNIVERSITY  OF  ILLINOIS 


THE  GRADUATE  SCHOOL 


1 HEREBY  RECOMMEND  THAT  THE  THESIS  PREPARED  UNDER  MY 


BE  ACCEPTED  AS  FULFILLING  THIS  PART  OF  THE  REQUIREMENTS  FOR 


Recommendation  concurred  in* 


Committee 

on 


Final  Examination* 


•Required  for  doctor’s  degree  but  not  for  master’s 


509403 


TABLE  OF  CONTENTS 


Introduction  

I TNq  Advisability  of  Stating  Prices  . . . . 

II  Comparative  Prices  

III  Odd  Prices  

IV  Statistical  Lata  

Bibliography 


Page  1 

" 5 


" 48 


' 


X 


INTRODUCTION . 

Although  the  statement  of  prices  is  a component  part  of  that  field 
of  advertising  which  deals  with  the  selling  of  articles  and  which  comprises  the 
great  majority  of  all  published  advertising,  it  is  a phase  which  is  given  scant 
consideration  in  the  text  books  and  studies  of  the  subject,  A great  deal  of 
space  is  given  to  the  appeals  which  should  be  used  to  arouse  the  buying  instincts, 
to  the  value  of  various  colors  as  an  attraction  to  the  eye,  to  the  use  of  dif- 
ferent styles  cf  type  to  express  character  or  individuality;  but  the  advisability 
of  stating  the  price  of  the  article  advertised  is  generally  dismissed  with  the 
statement  that  prices  are  very  important  for  cheap  articles  but  that  quality 
can  usually  be  expressed  better  without  recourse  to  them.  This  seems  to  be  the 
consensus  of  opinion  of  the  writers  on  the  subject  although  none  of  them  sub- 
stantiates his  views  with  any  facts  or  proofs.  Most  of  the  works  devote  but  a 
few  sentences  to  the  subject  and  then  allude  to  it  only  in  a general  way.  There 
are  a few  which  give  a page  or  two  tc  the  discussion,  but  it  cannot  be  said 
that  there  is  a single  work  of  general  reference  which  contains  a real  treatment 
of  the  value  of  price  statements. 

The  articles  in  magazines  devoted  to  advertising  yield  a little  more 
material,  for  it  is  a question  in  which  the  advertisers  of  the  country  are  inter- 
ested. "Printers'  Ink"  at  one  time  sent  out  requests  for  opinions  upon  the  use 
of  prices.  Articles  have  appeared  from  time  to  time  in  various  publications,  but 
the  aggregate  is  not  considerable.  The  advertisers  themselves  realize  the  im- 
portance of  the  subject  and  are  glad  to  help  in  its  solution;  however,  none  of 
them  has  made  an  analysis  of  the  problem  in  its  entirety.  In  fact  those  mer- 
chants who  have  the  greatest  cause  for  using  prices,  i.e.,  the  retailers,  seem 
to  follow  custom  or  prejudice  in  their  stores  without  considering  the  merits  of 
quoting  or  omitting  prices. 


2 


The  purpose  of  this  thesis  is  to  inquire  into  the  various  fields  of 
advertising  where  price  statements  might  "be  appropriate  and  to  make  a study  of 
when  and  how  such  statements  should  he  made. 

No  one  will  deny  that  there  are  some  fields  of  advertising  in  which 
price  has  no  place  - there  are  some  who  deny  it  a place  in  any  advertising. ^ 
Institutional  advertising  and  advertising  intended  to  establish  brand  or  firm 
name  have  no  use  for  prices.  Publicity  advertising  can  very  well  get  along  with- 
out their  use,  although  prices  have  been  used  to  advantage  in  some  display  signs. 
The  purpose  of  such  advertising  is  not  to  sell  goods  directly,  however,  but  to 
establish  the  name  of  the  firm  or  product  in  the  mind  of  the  buyer.  By  this 
means  goods  are  sold  indirectly.  Therefore,  such  forms  cf  advertising  have  no 
place  in  this  thesis,  only  those  forms  which  deal  directly  with  the  sale  of 
products  being  considered  in  this  study.  It  is  not  the  intention  to  show  that 
prices  should  or  should  not  be  stated  in  all  cases,  but  to  show  under  what  con- 
ditions such  statements  are  applicable  and  in  what  form  they  are  best  quoted. 

Naturally  advertising  may  be  classified  along  several  different  lines. 
It  may  be  classified  as  either  local  or  national  or  even  international;  it  may 
also  be  classified  according  to  the  media  used,  whether  newspapers,  posters, 
display  cards,  sign  boards,  magazines,  window  displays,  etc.  It  would  be  a waste 
of  time  to  go  through  each  one  of  these  separately  and  give  it  a distinct  treat- 
ment. On  the  other  hand,  there  are  several  types  of  advertising  which  need 
special  emphasis  because  of  their  extensive  use  for  the  propagation  of  price 
s tatements . International  advertising  may  be  discarded  because  of  its  relative 
unimportance  and  the  different  national  characteristics.  Local  and  national  ad- 
vertising follow  the  same  general  rules  in  many  respects  and  there  need  be  no 
special  distinction  made;  on  the  other  hand,  for  some  purposes  there  is  a decided 


1 Notably  the  Sherwin-Williams  Paint  and  Varnish  Company. 


difference  and  it  will  be  the  air:,  of  this  thesis  to  set  out  these  differences 
wherever  they  exist.  Uhen  a general  statement  is  made  in  the  discussion  of  the 
use  of  prices  it  may  be  taken  as  applying  to  both  local  and  national  copy  unless 

otherwise  stated. 

As  was  said  before,  the  various  forms  of  institutional  and  publicity 
advertising  are  not  to  be  discussed  here.  This  simplifies  the  number  of  media 
to  be  treated.  The  problem  will  naturally  settle  around  newspaper  and  magazine 
advertising  as  these  two  fields  comprise  the  majority  cf  advertising  to  the  con- 
sumer. Catalogues  are  also  important,  of  course;  especially  in  regard  to  the  use 
of  odd  prices,  where  the  catalogues  cf  the  mail  order  houses  offer  one  of  the 
best  illustrations  of  the  consistent  use  cf  such  quotations.  The  use  of  price 
cards  in  window  displays  and  price  tags  on  articles  within  the  store  afford 
special  problems  of  their  own  and  will  be  given  separate  attention  in  the  text. 

The  study  may  best  be  carried  cn  by  dividing  it  into  several  differ- 
ent phases.  For  this  purpose  four  principal  divisions  have  been  chosen.  These 
are : 

I.  The  Advisability  cf  Stating  Prices.  Under  this  heading  the  gen- 
eral problem  will  be  discussed.  Such  questions  will  arise  as:  Are  prices  best 
adapted  to  cheap  articles  or  may  quality  goods  also  profit  by  their  'use?  Should 
the  retailer  rely  upon  his  salesmen  to  acquaint  the  customer  with  the  price  or 
mahe  a consistent  disp lay  of  prices  in  the  papers  and  in  his  store?  Is  it  best 
tc  quote  prices  in  a rising  or  falling  market?  Should  prices  be  made  a feature 
of  the  advertisement  or  merely  an  auxiliary?  Are  prices  well  adap-ted  to  national 
advertising?  These  and  other  questions  of  a similar  nature  will  be  taken  up  and 
solutions  attempted. 

II.  Comparative  Prices.  In  this  division  the  use  of  comparative 
prices  will  be  criticised  pro  and  con  and  a suiamary  of  the  movement  against  their 
use  given.  The  quoting  of  comparative  prices  has  received  a great  deal  of 


4 


attention  from  retailers  recently  and  is  one  of  the  important  phases  of  the  price 

problem. 

III.  Odd  Prices.  The  employment  of  odd  prices  is  rather  closely  re- 
lated to  that  of 'comparative  prices,  b\it  still  there  is  sufficient  difference 
to  warrant  separate  treatment.  Mail  order  catalogues  are  the  principal  expon- 
ents of  this  form  of  price  statements  and  the  question  will  be  taken  up  mainly 
from  that  angle,  although  their  use  in  local  and  national  advertising  will  de- 
mand some  comment  also. 

IV.  Statistical  Data.  This  division  does  not  f-ally  take  up  the  ques- 
tion of  the  value  of  price  statements  fron  an  academic  viewpoint,  but  endeavors 
to  show  the  trend  of  advertising  in  regard  to  the  display  of  prices.  In  deter- 
mining this  trend  recourse  has  been  had  to  the  advertising  in  the  Saturday 
Evening  Post  from  1910  to  the  present  date,  1922.  Percentages  and  tables  are 
given  to  show  what  effect  the  business  cycle  has  had  upon  the  quotation  of 
prices. 


. 


I TEE  ADVISABILITY  OF  STATING  TRICES.- 


o 

A perusal  of  "both  national  and  local  advertising  will  demonstrate  to 
the  observer  that  more  than  half  of  the  firms  have  no  definite,  fixed  policy  in 
stating  prices.  They  quote  prices  at  times  and  at  others  omit  them;  often  in 
the  sane  advertisement  some  articles  will  hear  a price  v/hile  others  of  a like 
nature  will  not.  To  he  effective  in  the  greatest  degree  all  the  advertising  of 
a firm  should  follow  some  predetermined  plan,  and  the  use  of  prices  is  one  of 'the 
important  factors  which  must  he  included  in  this  plan.  It  is  not  necessary  that 
every  advertisement  should  or  should  net  carry  prices,  hut  given  certain  condi- 
tions there  is  a one  best  way  to  handle  the  problem. 

There  is  absolutely  no  reason  for  a half-hearted  compromise  in  the 
situation,  those  firms  that  try  to  make  a play  on  both  sides  are  only  wasting 
their  own  money  and  good  space  which  might  be  put  to  some  real  use.  Advertise- 
ments that  include  such  statements  as,  "reasonably  priced,"  "prices  extraordinar- 
ily low,"  "you  will  find  our  prices  right,"  "new  low  prices,"  "recent  reductions," 
and  many  others  of  similar  tone,  are  trying  to  cover  two  vastly  different  fields 
of  advertising  and  failing  miserably  in  the  attempt.  Such  statements  tell  ab- 
solutely nothing,  but  very  often  give  an  impression  exactly  opposite  to  the  one 
they  wish  to  convey.  They  have  the  effect  of  saying,  "V.'e  hope  we  won't  cheat  you, 
but  we  are  afraid  to  tell  you  how  much  we  are  going  to  charge  you."  The  adver- 
tiser evidently  imagines  that  he  has  written  a very  high  class  advertisement  which 
appeals  to  the  bargain  seeker  as  well  as  the  spendthrift.  As  a matter  of  fact 
no  one  is  deluded  by  the  subterfuge,  a price  appeal  has  been  attempted  but  not 
carri  d out,  and  at  that  point  the  advertisement  falls  flat.  There  appears  to  be 
a lack  of  faith.  One  of  the  worst  of  these  phrases  is  "our  prices  will  surprise 
you;"  sometimes  they  do  if  anyone  tak'-s  the  trouble  to  find  out  what  they  are. 
Which  way  the  surprise  will  be  is  not  stated. 


A short  time  ago  the  manufacturer  of  a high  class  automobile  announced 
in  large  headline,  "Our  prices  have  been  reduced  5600  to  5800.”  That  was  all  that 
was  said  about  the  cost  of  the  car;  the  reader  was  left  to  wonder  whether  the  re- 
duction had  been  made  from  $3,000  or  $8,000.  Advertising  is  intended  to  tell  news, 
but  half  the  news  is  no  better  than  none  at  all;  it  very  often  causes  annoyance. 

It  is  the  same  as  if  a newspaper  printed  the  announcement,  "A  prominent  senator 
arrived  in  the  city  today  and  will  speak  upon  a subject  of  great  importance  this 
evening.”  If  the  manufacturer  thinks  that  it  will  help  the  sale  of  his  car  oy 
announcing  that  the  price  is  lower  than  it  formerly  was  - and  he  evidently  believes 
it  will  or  he  would  not  make  the  reduction  - why  keep  the  present  price  a dark 
secret;  it  cannot  help  his  cause  one  whit.  Either  it  is  best  to  quote  the  price 
or  it  is  not,  a midway  measure  satisfies  no  one. 

There  is  a general  impression,  more  current  a few  years  ago  than  at 
the  present  time,  that  the  statement  of  prices  detracts  from  the  atmosphere  of 
quality  which  an  advertiser  tries  to  build  up.  A great  deal  of  the  advertising  of 
so-called  quality  goods  contains  no  prices,  due  to  the  prevalence  of  this  belief. 
Its  fallacy  can  be  proved  easily,  but  still  there  are  many  who  cling  to  it.  Pos- 
sibly this  belief  had  its  inception  with  the  highest  class  firms,  who  adopted  the 
custom  of  advertising  the  entire  organisation  rather  than  the  products;  i.e.  insti- 
tutional advertising.  This  type  of  copy  is  needed  to  keep  up  the  prestige  of  an 
establishment  or  to  create  a reputation,  and  consequently  prices  are  not  applicable 
in  this  connection.  The  ilea  of  not  quoting  the  price  has  persisted,  however,  and 

various  estimates  have  been  made  that  from  fifty  to  eighty  per  cent  of  all  ad- 

1 

vertisements  do  not  quote  the  price, 

1 The  higher  estimate  is  given  by  Mr.  C.  P.  Russell  in  an  article  entitled,  "Is 
it  Time  to  Advertise  Price  as  Well  as  Product?",  Printers'  Ink,  November  18, 
1920,  p.  3.  He  arrived  at  his  conclusion  by  counting  the  advertisements  in 
a woman's  magazine.  The  estimate  is  probably  high  for  all  classes  of  advertis- 
ing including  both  national  and  local.  Enumeration  of  advertisements  in  the 
"Saturday  Evening  Post"  shows  practically  the  same  result  in  1920,  but  the  lack, 
of  crice  quotations  was  especially  high  in  that  year,  due  to  economic  condi- 
tions. This  matter  is  discussed  further  in  the  fourth  division  of  this  treatise, 


The  mere  fact  that  the  price  is  or  is  not  quoted  does  not  determine 
the  quality  of  the  advertisement  or  influence  the  reader  to  come  to  that  conclusion 
regarding  the  product.  The  impression  of  quality  is  obtained  by  the  type,  the 
border,  the  use  of  white  space,  the  choice  of  words,  and  the  general  appearance 
and  character  ox  the  advertisement.  Price  statements  may  be  made  in  such  a fashion 
that  the  physical  appearance  is  not  marred  in  the  slightest. 

That  the  stating  of  prices  does  not  detract  from  the  quality  of  the 
r.roduct  can  best  be  proved  by  citing  a few  examples  of  their  use.  it  is  scarcely 
worth  while  to  note  that  the  most  aristocratic  department  stores  in  the  country 
believe  strongly  in  i>he  advisability  of  quoting  prices;  a glance  at  any  newspaper 
will  convince  the  most  skeptical  of  that  fact.  Naturally  institutional  copy  is 
used  to  a large  extent,  but  when  goods  are  offered  for  sale  the  price  is  generally 
included.  It  is  necessary  to  go  to  the  specialty  dealers  to  ascertain  what  in- 
fluence price  statements  have  upon  the  sales  of  a quality  product,  for  it  is  they 
who  have  most  persistently  hidden  their  products  behind  a veil  of  exclusiveness 
and  refused  to  take  the  public  into  their  confidence  where  prices  were  concerned. 

The  Gruen  Watch  Company  has  been  a consistent  user  of  prices  without 
detracting  from  the  dignified  tone  of  its  advertising.  Several  of  the  other 
watch  manufacturers  have  quoted  prices  at  various  times  but  none  has  gone  to  tne 
extent  of  Gruen  in  combining  prices  with  a purely  quality  appeal. 

One  of  the  most  spectacular  illustrations  of  the  results  obtained  by 
price  statements  is  afforded  by  the  Polls-Poyce  automobile  advertising.  ..hen 
the  Rolls-Soyce  Company  of  England  established  an  American  branch  at  2 ris  :ield, 
Massachusetts^  the  company’s  advertising  policy  was  not  changed  and  the  Rolls-Boyce 
announcements  carried  no  prices.  No  one  can  dispute  the  quality  of  product  or 
the  standing  of  the  firm;  the  car  has  attained  an  international  reputation  and  i3 

1 "Does  a Quality  Article  Suffer  Loss  of  Dignity  ’’.hen  Priced?"  by  Poland  Cole. 

Printers'  Ink,  .la y 06,  1301,  p.  141. 


considered  by  many  to  be  the  foremost  automobile  of  the  world.  The  company  is  a 
conservative  Fnglish  firm  which  has  been  manuf ac tur ing  high-class  motor  cars  for 
about  twenty  years,  so  it  was  quite  an  innovation  when  the  advertising  began  to 
include  prices.  The  copy  has  always  been  distinguished  by  a large  amount  of  white 
space  and  very  few  words;  it  takes  the  appearance  more  cf  an  announcement  card 
than  an  advertisement • The  name  "Rolls-Royce"  appears  in  moderate-sized,  ] lain 
type  and  below  this  a few  words  concerning  the  character  of  the  car.  In  very 
small  type  at  the  bottom  is  found  sons  such  statement  as>  "An  open  phaeton  model 
coi  pletely  equipped,  $14,950."  It  is  reported  that  shortly  after  the  price  began 
to  appear  in  this  manner  the  sales  were  tripled.  A - e . ...  cars  were  even 

sold  by  mail.  Since  its  first  experiment  with  the  power  of  the  stated  price,  the 
Rolls-Royce  Company  has  continued  the  use  cf  prices  in  every  advertisement  it 
has  published  in  America. 

In  commenting  upon  this  experience  -r.  Roland  Cols  has  this  to  say:" 

"The  maker  of  a quality  article,  who  keeps  price  out  of  sight,  prob- 
ably loses  more  sales  to  people  who  believe  the  price  to  be  double  what  it  actually 
is,  than  he  makes  to  the  few  who  obey  the  quality  summons  because  they  do  not  care 
what  price  they  pay. 

"Why  do  so  many  advertisers  tumble  into  this  trap?  Apparently,  it 
makes  little  difference  whether  the  unit  of  sale  is  five  cents,  a dollar,  a 
hundred,  or  $14,950.  Many  institutions  have  labored  for  years  to  surround  an 
article  with  a quality  atmosphere  when  the  simple  expedient  of  stating  the  irice 
would  have  helped  to  do  the  trick  in  one-tenth  of  the  time." 

The  idea  that  the  magnitude  of  the  price  makes  little  difference  in 
results  seems  to  be  borne  out  by  facts,  and  this  rule  may  also  be  applied  to 
articles  of  any  style  or  description.  One  should  scarcely  believe  that  advertising 

1 "Does  a Quality  Article  Suffer  Loss  cf  Dignity  When  Priced?"  by  Roland  Cole. 

Printers'  Ink,  I.Iay  23,  1921,  p.  141. 


the  price  of  a rare  painting  or  antique  would  materially  .ffect  the  sales,  but 
such  is  the  case . according  to  Mr.  C.  P.  Russell.  He  says,-1  "A  certain  dealer  in 
antiques,  rare  books,  prints,  etc.,  had  been  advertising  for  some  time  without 
large  results.  He  was  anxious  to  establish  his  place  as  headquarters  for  col- 
lectors, but  buyers  seemed  shy.  Finally,  he  changed  the  tenor  of  his  copy.  In- 
stead of  advertising  his  business,  he  advertised  specific  articles  with  specific 
prices.  His  copy  read  something  like  this:  'First  edition  of  Blank's  works, 
hand-tooled  covers,  illustrated  with  rare  engravings  by  So-and-Sc.  Very  scarce 
and  precious;  $12,000.'  He  got  an  order  the  first  day  from  one  of  the  wealthiest 
men  in  Hew  York,  and  inquiries  from  other  rich  collectors  who  previously  had  never 
seemed  to  be  aware  of  his  existence. 

"A  New  York  art  firm  had  been  doing  business  for  several  years  with 
only  moderate  success.  Paintings  seemed  to  move  slowly.  They  began  to  advertise 
simply  by  running  a cut  of  a painting,  naming  the  artist  and  quoting  the  price. 
They  now  get  orders  from  distant  States,  whereas  formerly  they  had  considered  New 
York  City  their  only  field." 

The  use  of  mail-orders  in  purchasing  such  expensive  articles  as  auto- 
mobiles and  paintings  shows  the  importance  of  stating  the  price.  A prospective 
purchaser  may  have  a strong  desire  to  buy  a certain  article  but  his  mind  is  net 
made  up  until  he  knows  the  price;  and  that  is  where  the  sale  hangs.  Price  is  the 
final  consideration  and  the  desire  to  purchase  often  lies  dormant  until  that  point 
is  cleared  up  either  by  the  advertiser  himself  or  by  some  chance  information 
which  the  prospect  happens  to  get.  That  the  quoting  of  a price  brought  such  in- 
stantaneous res’ll ts  in  the  cases  mentioned  shows  that  the  purchaser  does  net  like 
to  take  the  initiative  in  finding  what  the  article  is  going  to  cost  him.  The 
final  punch  which  puts  the  sale  across  is  lacl  in  hen  the  price  is  emitted. 


1 Printers'  Ink,  December  23,  1920,  p.  44. 


'1 


. 


1C 


In  the  advertising  of  quality  goods,  however,  it  is  host  not  to  em- 
phasize the  price,  for  this  cheapens  the  appeal.  Only  one  kind  of  appeal  should  "be 
made  at  a time  and  the  appeal  of  quality  is  one  of  the  strongest  which  can  he  made. 
An  investigation  made  by  the  Research  Committee  of  the  Dallas  (Texas)  Advertising 
League^"  showed  that  quality  was  regarded  as  the  most  important  consideration  in 
advertising.  The  women  interviewed  placed  style  as  second  and  price  third,  while 

the  men  ranked  price  second.  To  the  question,  "Are  you  willing  to  pay  a slightly 

a 

higher  price  for  an  article  in  order  to  huy  it  from,  a firm:  which  has/  reputation 
for  hacking  its  advertised  word  and  which  has  a reputation  for  honesty,  fairness, 
and  liberality?"  the  replies  were  universally  "Yes." 

An  experiment  conducted  in  the  psychology  laboratory  at  the  University 
of  Minnesota^  shows  practically  the  same  results;  age  and  reliability  of  tile  firm 
and  the  quality  of  the  product  exert  the  greatest  influence  on  the  buyer.  While 
the  methods  used  might  be  criticized  in  that  they  smack  more  of  the  laboratory 
than  conditions  in  actual  practice,  the  conclusion  that  reliability  and  quality 
come  foremost  in  the  consideration  of  a large  percentage  of  buyers  cannot  be 
doubted. 

However,  this  does  not  invalidate  the  statement  that  price  is  the 
point  upon  which  most  sales  hinge  and  that  the  knowledge  of  that  price  must  come 
before  the  final  decision  is  made.  The  fact  that  a price  is  included  in  advertise- 
ment does  not  mean  that  the  appeal  rests  upon  that  ground  alone.  The  copy  may 
stress  quality,  reliability,  style  or  any  other  feature  and  the  effect  will  not 
be  altered  by  including  the  price  of  a sx^ecific  article;  to  many  people  a high 
price  is  an  indication  of  quality.  If  the  price  i3  honest  no  one  need  be  afraid 
of  quoting  it.  A simple  x-rice  statement  is  nothing  but  further  information  about 

1 Quoted  in  "Judicious  Advertising, n April,  1920,  p.  61. 

2 Gale,  "On  the  Psychology  of  Advertising.  University  of  Minnesota  publication, 
1900 . 


' 


; •- 


, 


ii 


the  article,  and  if  the  type  or  position  does  not  emphasize  the  statement,  there 
is  no  indication  of  cheapness  or  price  appeal. 

Prices  may  be  stated  in  a variety  of  ways;  they  may  be  put  in  the 
headline,  in  the  body  of  the  advertisement  (the  "talk"),  at  the  bottom,  or  in  a 
row  down  either  side.  The  type  may  be  large,  small,  or  the  same  style  as  the 
copy,  ornate  or  plain;  but  no  matter  where  or  how  the  price  is  shown,  it  indicates 
to  the  prospective  customer  that  the  firm  is  not  afraid  that  its  goods  are  worth 
less  than  it  is  going  to  aslc  him. 

Naturally,  if  the  goods  are  on  sale  at  a bargain,  or  if  the  price  has 
been  recently  reduced,  or  if  they  are  considered  especially  cheap  at  that  quota- 
tion, the  price  should  be  emphasized  and  stated  in  bold  figures.  For  this  pur- 
pose the  headline  is  a good  position.  If  a large  number  of  articles  is  listed 
in  the  same  advertisement,  the  price  is  generally  placed  after  the  description 
of  each  article.  A neat  arrangement  which  emphasizes  the  price  is  to  place  the 
prices  in  a row  down  the  edge  of  the  advertisement.  This  is  somewhat  on  the 
order  of  a restaurant  menu  and  allows  easy  comparisons.  Sometimes  this  row  of 
figures  is  placed  at  the  left  hand  side  instead  of  the  right,  but  the  position 
makes  little  difference  except  that  the  left  hand  side,  being  the  one  upon  which 
the  eye  falls  first,  probably  accents  the  prices  slightly  more  than  the  right. 

The  bottom  of  the  copy  is  the  least  emphatic  position,  and  this  is  where  most 
high-clas3  firms  place  their  prices.  If  no  special  emphasis  is  to  be  placed  upon 
the  price  - that  is,  when  the  price  is  simply  given  for  general  information  - this 
is  the  best  location. 

Placing  the  price  within  the  "talk"  of  the  advertisement  can  be  done 
only  when  the  copy  is  "newsy"  and  brief;  otherwise  the  j rice  will  be  hidden  and 
its  effect  lost.  YJhen  this  position  is  used,  the  advertising  appears  at  the  first 
glance  to  contain  no  prices  and  is  sometimes  passed  over  by  those  shoppers  who 


look  through  the  advertisement 3 to  see  how  best  they  may  spend  their  money,  "hen 
price  statements  are  to  be  made,  it  is  just  as  well  that  they  be  put  in  lain  view, 
for  the  clearer  an  advertisement  reads  the  more  influence  it  exerts  upon  its 

readers . 

The  type  used  for  the  figures  creates  a certain  impression  upon  the 
reader  also.  Generally  the  type  should  be  uniform  in  style  throughout,  but  figures 
are  plain  facts  and  do  not  lend  themselves  readily  to  fancy  type.  There  is  noth- 
ing gained  by  placing  the  price  in  such  ornamental  type  that  the  sixes  and  nines 
look  like  zeros.  Plain  type  which  cannot  be  misunderstood  is  the  best  to  use. 

The  size  of  the  type  used  for  the  price  statements  may  vary  from,  that  used  in  the 
rest  of  the  copy.  Large,  heavy  figures  indicate  that  the  price  is  being  emphasized 
while  small,  light  figures  show  that  only  information  is  being  given  without  any 
fuss  or  flurry.  Thus  the  heavy,  black  type  is  best  adapted  to  the  bargain  offer 
or  price  inducement,  while  the  small,  unobtrusive  type  is  the  kind  applicable  to 
the  quality  appeal.  An  advertiser  need  never  fear  that  a price  statement  set  at 
the  bottom  will  be  overlooked;  prices  are  the  thing  that  the  buyer  is  looking  for 
I if  he  is  given  half  a chance  to  find  them  he  will  hunt  them  out. 

The  quoting  of  prices  in  national  advertising  is  consequently  closely 
allied  with  the  policy  of  the  firm  in  maintaining  the  resale  price  of  its  products. 
It  is  not  necessary  here  to  go  into  the  problem  of  the  advantages  and  disadvantages 
accruing  from  a maintained  retail  price,  but  before  prices  can  be  quoted  in 
national  publications  it  is  imperative  that  there  be  3on.e  concurrence  between  the 
manufacturer  and  his  wholesale  and  retail  distributors  as  to  what  the  final  price 
is  to  be  to  the  consumer.  I'To  end  of  hard  feelings  are  caused  by  having  to  pay 
twelve  or  fifteen  cents  for  a can  of  beans  which  has  been  advertised  in  national 
publications  at  ten  cents.  Cutting  the  price  below  that  advertis  ] 30  -roves 
detrimental  to  the  product.  The  maintaining  of  the  price  is  a hard  thing  to  ac- 
complish and  no  doubt  this  is  the  reason  why  prices  are  not  more  prevalent  in 


13 

national  advertising. 

"Printers'  Ink"  comments  upon  this  ,hase  as  follows :x  "That  are 
prices?  The  public  wants  to  know.  The  manufacturer  may  have  to  close  his  plant  • 
if  the  public  doesn't  think  his  product  is  priced  fairly.  Yet  this  most  It. ; or t ant 
member  of  the  manufacturer's  sales  force,  fixes  any  price  he  pleases.  The  manu- 
facturer loses  many  a sale,  transforms  many  a potential  consumer  into  an  enemy 
if  his  distributor  takes  liberties  with  his  product." 

That  the  retailers  really  profit  by  the  manufacturer's  advertising  the 
price  is  shown  by  a resolution  passed  in  August,  1920,  at  the  convention  cf  the 
New  York  Retail  Grocers'  Association  held  at  Poughkeepsie.  The  resolution  read:’ 

"Whereas,  During  the  last  few  years  prices  on  all  commodities  have 
risen  to  such  proportions  that  all  former  established  retail  trices  had  to  be  dis- 
continued and  new  ones  established;  .and,  whereas  the  great  majority  of  the  nation- 
ally established  advertised  articles  are  kept  constantly  before  the  public  through 
the  newspapers,  magazines  and  other  mediums  without  the  slightest  notice  or  con- 
veyance from  the  manufacturer  to  the  public  that  the  old  resale  price  had  been 
discontinued;  therefore  be  it 

"Resolved,  That  the  delegates  to  the  Annual  State  Convention  of  Retail 
Grocers  assembled,  do  hereby  ask  and  they  demand  that  all  such  manufacturers  im- 
mediately put  a resale  price  with  their  advertising  as  of  yore,  to  convince  a 
much-bewildered  public  that  it  is  net  the  retailer  who  is  pocketing  the  money  be- 
tween the  old  established  and  the  new  selling  i>rice.’: 

1 Comment  upon  "Your  Prices  to  Lie"  by  Roy  Dickinson,  Printers'  Ink,  April  28, 
1921,  p,  57.  The  article  tells  of  a shopping  tour  of  groceries  where  nation- 
ally advertised  goods  were  priced  differently  in  practically  every  store. 

2 Quoted  in  Printers'  Irik,  September  16,  1920,  p.  41. 


One  of  the  "best  ways  to  control  the  r.e sale  price  is  to  rsark  the 
price  on  the  package  cr  on  the  article  itself.  Several  shoe  nanuf acturer s stamp 
the  *'rice  on  the  soles  of  t'  sir  product,  and  h e practice  of  putting  the  price 
on  the  package  is  likewise  followed  hy  a large  number  of  manufacturers  of  food 
roducts.  This  '-rot act s the  public  fra.  unscrupulous  merchants  and  assures  t 
that  they  are  not  paying  too  high  a price. 

VThen  a manufacturer  starts  production  on  a new  conroo iity  he  natur- 
ally comes  up  against  the  question  of  whether  his  advertising  should  hear  the  price 
cf  the  article  or  spend  its  effort  in  enumerating  the  uses  and  establishing  a 
desire  among  the  consumers,  her  a new  product  it  is  almost  imperative  that  the 
rice  be  stated,  for  otherwise  there  is  nc  measure  of  value.  It  is  all  right  to 
use  teaser  campaigns  and  arouse  the  buyers  curiosity,  but  some  day  he  must  be  let 
into  the  secret.  It  is  the  same  way  with  quoting  the  price  on  a new  product ; 
when  the  price  doss  not  appear  he  becomes  inquisitive  and  wants  to  learn  what  it 
is,  but  if  the  manufacturer  persists  in  keeping  the  price  a secret  the  buyer  soon 
loses  interest  and  his  thirst  for  knowledge  about  that  particular  article  dies.  An 
old  established  product  may  omit  the  price  once  in  awhile  without  causing  much 
notice,  but  a statement  of  price  is  essential  to  a product  which  is  .just  being  es- 
tablished. 

The  retailer  is  net  hampered  by  the  ur  obi  ere  cf  the  maintained  price 
'■  1 3 is  left  free  to  follow  his  own  whim  in  the  matter  of  quoting  “rices.  The 

fact  that  there  is  not  a mere  general  employment  of  '"rices  in  retail  advertising  is 
due  to  several  causes.  One  merchant  assumes  that  the  use  of  prices  will  make 
people  believe  he  conducts  a cheap  store,  another  imagines  that  prices  are  applicable 
only  in  the  event  of  a sale,  a third  would  like  to  quote  prices  but  says  that  he 
can  not  afford  a full-page  spread  w1  ere  he  would  have  room  to  show  is  entire  line, 
and  a fourth  claims  that  his  advertising  draws  the  p eople  to  the  store  where  the 


. 


. 


' 


■ 

■ 


. 


15 


clerks  can  tell  them  the  price  after  creating  a desire  to  - ur chase,  and  sc  it 

goes. 

The  answer  to  the  first  merchant  has  already  been  made  under  the 
discussion  of  the  quality  appeal,  ho  one  has  cause  to  be  afraid  t • at  a statement 
of  price  will  place  his  establishment  in  a cheap  class  unless  he  makes  tb at  state- 
ment in  such  a way  that  it  draws  attention  tc  the  fact  that  the  store  is  catering 
to  a cheap  trade.  If  he  does  net  want  to  be  considered  a low-priced  store,  he 
simply  has  to  convince  the  public  of  that  fact  by  quoting  high  prices.  Nothing 
else  will  carry  as  much  weight  in  an  argument. 

Of  course  prices  are  paramount  when  a sale  is  announced  but  they 
are  important  at  other  times  as  well . Truman  A.  ~e  TTeese  says,"  "...  I should 
say  that  the  secret  of  success  in  a publicity  campaign  for  a general  merchant  in 
local  mediums  consists  in  a daily  announcement  of  PEIC23  covering  what  the  mer- 
chant calls  his  ’leaders'  in  each  department  of  the  business.  The  ublic  is  in- 
terested in  PRICES.  When  you  have  created  a WA11T  in  the  mind  of  the  reader  through, 
your  advertisement,  the  next  question  that  interests  him.  is  the  price  at  which 
that  Want  may  be  satisfied.  In  the  field  of  general  merchandising  it  may  be  stated 
as  a fact  that  a certain  number  of  articles  that  are  carried  in  a general  store 


are  wanted  in  each  family  each  day  or  week  in  the  yean.  The  mer 


chant  t 1 : ev e f c r e 


oas  this  established  want  or  desire  or  necessity  as  a basis  for  his  business.  Eis 
publicity,  therefore  becomes  largely  a question  of  quality,  newness,  stylishness, 
and  price;  but  the  latter  is  after  all  the  lode  stone  vf  ich  draws  the  shopper 
into  the  marts  of  trade." 

It  is  not  necessary  for  a merchant  to  include  all  of  his  assortment 


1 "The  Principles  of  Practical  Publicity"  by  Truman  A.  De  Wees?,p.  104 


16 


of  goods  in  every  advertisement;  to  spread  the  effort  over  several  unrelated 
articles  creates  the  effect  of  confusion  and  is  detrimental  to  all.  Tie  best 
results  may  be  obtained  by  selecting  some  definite  article  and  putting  all  the 
power  of  the  pen  behind  it.  A fall  description  of  the  article  should  be  given, 
and  this  necessarily  includes  the  price.  Where  a erchant  is  not  willing  tc 
devote  his  entire  space  to  the  exploitation  of  one  article,  he  may  still  give 
the  main  part  of  his  space  to  advertising  bis  store  but  place  an  illustration 
of  some  specific  article  in  an  unused  corner  and  describe  it  as  fully  as  pos- 
sible - stating  the  price. 

The  use  of  a specific  article  is  also  applicable  where- price 


ges  occur.  The  st.  t,  ’ "Suits  priced  fro:.  $25  to  $6C"  is  inferior  to 
a cut  wit!  tl  : legend  under  it,  "$40.  Other  suits  $25  to  $60."  It  is  easier 
for  the  mind  to  grasp  one  object  than  an  entire  group,  and  this  is  the  principle 


which  makes  a definite  price  statement  superior  to  a range, 


W-e  same  rule 


applies  tc  such  quotations  as,  "Umbrellas  $1.00  and  up."  T ie  might  better  be 


given. 


ir.’a  T' 


have  five  hundred  umbrellas  priced  at  $1.00.  Other  models  may  be 


had  from  $1.50  to  0V.5C."  T is  last  statement  confines  the  rices  within  limits 
and  males s a definite  announcement  of  the  number  of  umbrellas  available  at  the 

low  price. 

The  average  customer's  mental  process  passes  through  four  stages 

something  like  this:* 

1.  What  is  that  article? 

2.  What  is  it  for? 

3.  Is  it  good  stuff? 

4.  What  is  the  price? 

hie  large  department  stores  and  mail-order  houses  recognize  this 


1 "When  t:  ’ti se  the  Price"  by  C.  ?.  Bussell,  Printers'  Ink,  December  23 

1920,  p.  41. 


17 


fact  and  there  fora  make  their  advertisements  as  complete  as  possible.  The  best 
time  to  sell  a prospect  is  when  he  is  interested,  and  that  is  when  he  is  read- 
ing the  advertisement.  I-  the  price  is  left  out  the  sale  is  very  seldom  com- 
pleted and  often  the  prospect  is  lost.  "To  become  interested  in  f : description 
of  an  article,  only  to  find  in  the  end  that  the  price,  one  of  the  most  important 
pieces  of  information,  has  been  omitted,  is,  to  say  the  least,  disappointing  - 
and  it  is  suspicious,  too.  ‘The  price  of  that  oust  be  'way  up'  will  be  the  first 
thought  of  the  reader,  who  is  not  likely  to  seek  further  information,  while  under 

n 

that  impression. "A 

The  question  is  often  asked  whether  the  price  is  mere  important 
on  goods  bought  by  men  or  women.  The  price  is  important  on  all  articles,  but  if 
a choice  mast  be  made,  it  is  probably  more  important  to  quote  the  price  to  men 
shoppers  than  women.  Men  seem  t:  have  a particular  aversion  to  inquiring  the 
price  when  they  can  ascertain  it  by  come  ether  means.  A man  usually  shops  in  a 
hurry  and  therefore  he  wants  all  the  information  possible  before  he  goes  into 
the  store;  if  one  merchant  gives  him  that  information  while  another  dees  not,  the 
chances  are  that  he  will  patronize  the  first  one. 

A woman, on  the  other  hand,  is  more  prone  to  shop  around  and  com- 
pare goods  and  values.  Che  is  interested  in  the  price.  - often  ere  than  the  man, 
but  she  has  no  scruples  about  ashing  the  price  after  she  gets  into  the  store. 
However,  she  generally  gees  to  those  stores  which  advertise  prices  which  suit  her. 
She  does  part  or  shop]  ing  in  the  . aj  er  before  she  comes  down  town. 

Arthur  J . Mealand  carried  cut  an  investigation  among  both  men 

and  women  shoppers  with  the  ;urpose  of  enlightening  the  merchants  regarding  this 
2 

problem.  The  question  asked  was: 

1 Albert  E.  Edgar,  "How  to  Advertise  a Retail  Store,"  p.  52. 

2 Arthur  J.  Mealand,  "Effective  Store  Advertising,"  pp.  25  and  37. 


. 


• 

. 

' 

- 


’ 


. 

. 


13 


"Do  you  over  "buy  or  inquire  about  an  advertised  article  when  the 
price  is  not  given  in  the  advertisement?" 

One  thousand  women  responded:  853  replied  "Mo;"  147  answered  "Yes." 
Mr.  Meal and  contends  that  the  proportion  replying  "Mo"  would  have  been  even  great- 
er if  he  had  made  it  clear  that  he  refers!  solely  to  articles  advertised  by  the 
stores  and  that  he  did  not  include  magazine  advertisements.  His  comment  is: 

"Mvere  is,  I discovered,  a prevailing  sentiment  among  women  that 
when  prices  are  not  published  the  advertiser  loss  not  intend  to  'play  fair'; 
that,  if  possible, he  will  take  advantage  of  the  buyer.  Ths  explains  why  853 
out  of  a thousand  will  not  even  inquire  about  an  advertised  article,  ruch  less 
buy  it,  when  the  price  is  not  quoted." 

Of  the  men  he  says: 

"All  but  a very  few,  and  2 any  with  considerable  emphasis  replied 


..ol 


klever  I 
"Met  on  your  life! 

"The  remarks  cf  others  would  not,  I fear,  sound  very  complimentary 
to  those  advertisers  who  continue  trying  to  reach  the  public,  especially  the 
Lsculine  portion  of  it,  without  quoting  prices.  Those  who  did  reply  'Yes’, and 
they  were  very,  very  few  indeed,  added:  'If  the  article  appeals  to  me  and  is 

really  needed. ' 

"Talcing  into  consideration  the  answers  received  to  this  question 
from  cot.:  women  and  men,  I am  convinced  that  the  advertiser  who  does  not  quote 
prices  cs  absolutely  wasting  his  effort,  time  and  money.  I repeat  :- 

"QUOTE  PRICES.  It  breeds  confidence  and  confidence  is  the  great- 
est asset  a firm  can  have. " 


IS 


Many  dealers  do  not  like  to  put  prices  in  t"  eir  windows  "because 
they  feel  that  it  detracts  from  the  display.  The  profuse  U3e  of  rice  cards 
of  every  description  does  create  a disorderly  appearance  and  is  anything  "out 
artistic.  The  window  display  is  an  important  part  of  a retailer’s  advertising 
scheme  and  should  he  considered  as  carefully  as  ary  other  phase  of  the  general 
sellin  plan.  A great  many  shoppers  are  attracted  to  the  store  for  the  first 
time  because  of  the  windows.  Mr.  I leal  and  claims  that  air. oat  universally  the 
windows  are  the  means  for  attracting  the  customers  for  the  first  ti  e,  and  that 
an  important  part  of  the  window  display  is  the  conspicuous  u ss  of  price  cards?" 

Price  cards  should  correspond  to  the  character  of  the  display 
and  the  dimensions  should  he  in  the  same  proportion  as  the  window.  For  instance, 
if  the  window  is  oblong  the  cards  should  he  of  the  save  shape  and  their  length 
and  "breadth  correspond  to  one  another  in  the  same  proportion  as  t?'e  length  and 
"breadth  of  the  window.2  The  cards  are  r. ore  artistic  when  placed  at  the  foot  of 
the  article  and  hot  pinned  on  it.  Small  easels  will  prove  effective  for  this 
purpose.  As  most  people  step  close  to  the  window  tc  look,  the  host  pc  si  tier,  for 
the  card  is  not  too  near  the  front  hut  slightly  hack.0 

The  principal  feature  to  strive  for  in  window  displays  is  attrac- 
tiveness and  all  else  si  Id  he  subordinated  to  this  end . '.boat  price  cards  can 
he  made  to  fit  into  an  artistic  display  has  been  proved  by  window  dressers 
throughout  the  country.  In  stores  who  do  not  cater  to  the  artistic  tempered,  the 
use  of  price  cards  is  paramount  above  ail  else  and  they  should  he  resorted  to 
without  stint. 

hi thin  the  store  the  price  tags  take  the  place  of  the  cards  in 
tae  windows,  wit-  this  difference;  the  price  tags  nay  he  written  in  code  so  that 


1 

Arthur 

J.  Me  aland, 

"Effective  Store-Adverti sing , 

" P.  1? 

2 

"The  h 

orld  F.etailor 

>"  April,  1922,  p.  1. 

3 

Arthur 

J.  Me aland, 

"Effective  Store-Adverti sing, 

O 9 

" p.  61 

none  but  the  employees  of  the  store  are  able  to  decipher  them.  This  practice 
is  a relic  of  the  old  days  when  each  article  had  more  than  one  price  and  higgling 
was  the  rule.  The  one-price  system  is  generally  praised  by  the  writers  on  the 
subject,  but  a few  still  believe  that  secret  codes  indicate  wore  dignity  in  a 
store  than  plain  price  marks.1  As  a matter  of  fact  the  most  dignified  stores 
today  are  the  ones  using  the  plain  price  system  as  they  realize  that  the  use  of 
a price  interpreter  not  only  takes  time  but  appears  suspicious. 

p 

One  prominent  advertising  man  expresses  his  views  as  follows:-’ 

"The  one  pleasure,  above  all  others,  to  shoppers,  male  or  female, 
is  to  see  plainly  the  price  attached  tc  the  various  articles  c*  merchandise  while 
they  are  spending  a few  minutes,  from  one  cause  or  another,  in  your  store. 

"If  I had  the  opportunity  to  make  a suggestion  as  invited  in  the 
’At  Your  Service’  ad,  my  suggestion  would  be:  Put  price  tags  on  your  goods 
where  shoppers  can  see  them. 

"I  can  make  my  arguments  plainer  by  having  you  answer  the  follow- 
ing questions: 

1.  How  many  times  each  day  are  you  called  from  some  distant 
part  of  your  store,  or  some  particular  work,  or  leave  a customer, 
tc  answer:  'Dm  at  is  the  price  cf  this?’ 

2.  How  : ruch  cf  your  time,  and  that  of  pour  clerks,  is  taken 
up  each  day  waiting  cm  'sight -seeing’  shoppers,  whc  have  no  in- 
tention of  buying,  but  only  wish  to  price  goods? 

3.  Did  you  ever  stop  tc  figure  that  by  displaying  price 
tags  you  might  be  able  to  economize  on  clerk  hire? 

4.  Do  you  realize  that  if  you  were  tc  install  a price  tag 
system  it  would  be  a drawing  advertiser  cent  in  itself? 


1 Opdycke,  "Advertising  and  Selling  Practice,"  p.  182. 

2 'atress,  "How  a P.etail  Her  chant  _SDcul 


21 


are 

at 


5.  To  you  appreciate  tl  it  sc  .e  people  are  reserved,  others 
are  timid,  about  asking  the  prices  of  goods  in  which  they  are  not 
especially  interested  just  to  avoid  pressure  being  - \- 1 on  then,  to 
buy,  and  which  they  night  have  bought  had  the  price  been  dis- 
played and  was  within  their  rears? 

6.  Do  you  know  t'  at  window- displayed  price  tags  are  t‘  e 
cause  of  many  sales?  Often  attracted  by  some  article  in  a store 
window  - but  having  no  price  tag  - I have  passed  on  rather  than 
step  in  to  find  out;  and  I am  no  exception  to  the  laws  of  human 
nature. 

?.  Did  you  ever  ask  yourself  why  it  is  not  as  important  to 
display  prices  in  your  store  as  it  is  in  your  newspaper  advertise- 
ments? In  your  advertising  you  use  them  to  attract  notice.  T."  y 
not  follow  the  same  plan  where  customers  are  actually  at  hand? 

8.  Do  you  knew  that  a price  will  sometimes  attract  atten- 
tion when  without  it  an  article  would  have  passed  unnoticed;  in 
other  words,  that  some  peoule  are  so  mentally  constituted  that 
figures  arrest  their  thought  quicker  than  a piece  of  merchandise, 
and  that  the  price,  rather  than  the  quality  of  the  goods,  is  the 
incentive  that  prompts  them  to  buy? 

9.  Have  you  ever  tried  the  ex  eri  merit  of  watching  shoppers 
pass  down  an  isle  along  which  goods  are  priced  and  then  down 
another  aisle  where  prices  are  not  shown?  Try  it,  and  note  the 
results. 11 

The  question  arises  in  the  wind  cf  the  advertiser:  If  prices 

good  is  it  well  to  use  them  at  all  times?  Prices  may  he  used  to  advantage 
all  times,  for  a just  - rice  never  injured  the  merchant,  but  there  are  tires 


23 


II  COMPARATIVE  PRICES. 


The  question  of  the  advisability  of  quoting  comparative  prices  - that 
is  to  say  "was  $5.00,  now  $3.75,"  or  $5.00  value  for  $3.75  - is  one  of  rather 
recent  origin.  The  rise  of  comparative  prices  in  advertising  is  not  newx  in 
itself,  hut  the  discussion  concerning  the  ethics  of  their  use  dates  from  1916. 
Until  that  time  it  was  considered  necessary  to  state  two  prices  in  an  advertise- 
ment in  order  to  make  people  believe  that  prices  were  reduced,  and  that  a bar- 
gain was  being  offered,  ft  that  time  a few  of  the  more  progressive  merchants  be- 
gan to  realize  that  the  use  of  comparative  prices  was  being  overdone  and  that 
it  already  had  lost  a large  part  of  its  pulling  power.  This  was  probably  no 
new  condition,  but  it  took  the  advertising  profession  some  time  to  overthrow 
the  teachings  of  the  greatest  of  all  early  advertisers,  P.  T.  Bar nun,  when  he 
said  that  people  liked  to  be  fooled.  Comparative  prices  had  come  to  be  so  ex- 
aggerated that  little  faith  could  be  put  in  them,  and  consequently  they  were 
defeating  their  own  purpose. 


1 In  a letter  to  the  writer  Mr.  Louis  B lumens took,  Advertising  Manager  of  Stix, 
Baer  and  Fuller  of  St.  Louis,  says,  "Comparative  prices  have  been  in  use 
about  fifty  years.  The  general  store,  later  the  department  store,  to  stim- 
ulate business,  cut  the  prices  of  staples.  That  was  the  beginning.  Natur- 
ally, people  responded,  and  gradually  the  public  was  educated  to  watch  for 
the  specials  - to  purchase  things  ’on  sale.'" 

2 In  October, 1913,  Stix,  Baer  and  Fuller  of  St.  Louis  made  the  announcement  that 
henceforth  their  advertising  would  quote  no  more  comparative  prices,  Mr. 

Louis  B lumens took,  their  advertising  manager,  had  brought  about  the  change 

in  their  policy,  and  to  him  is  credited  the  instigation  of  the  movement  which 
ha3  spread  throughout  the  United  States,  and  is  today  one  of  the  chief  con- 
troversie3  in  retail  advertising.  Several  other  large  department  stores  fol- 
lowed the  lead  of  Stix,  Baer  and  Fuller,  but  it  was  not  until  the  price  de- 
cline following  the  late  war  that  the  question  came  into  wide  discussion. 
Notable  among  the  firms  which  early  adopted  the  policy  of  stating  no  cor  - 
parative  prices  is  Marshall  Field  and  Company  of  Chicago.  This  store  was 
probably  the  first  one  to  discontinue  the  use  of  such  prices,  as  Mr.  G.  E. 
Schaeffer,  Advertising  Manager,  states  that  Marshall  Field  and  Company  adopt- 
ed this  policy  about  sixteen  years  ago,  which  would  make  the  time  1506.  The 
fact  was  never  stressed  particularly,  however,  sc  the  recent  movement,  which 
has  created  so  much  comment,  may  be  said  to  begin  in  1916. 


The  fight  against  the  use  of  comparative  prices  has  been  carried  on 
consistently  by  Mr.  B lumens took  who  made  it  one  of  his  chief  aims  during  his 
term  as  President  of  the  Associated  Retail  Advertisers.  Mr.  Blumenstock  i3 
unalterably  opposed  to  the  quoting  of  comparative  prices  in  any  form  whatsoever. 
His  position  is  well  shown  by  a perusal  of  some  of  the  advertisements  of  Stix, 
Baer  and  Fuller.  In  one  of  them-*-  he  says,  "The  question  is  frequently  a3ked, 
'Are  comparative  prices  the  only  evil  in  retail  advertising?1  - and  the  answer 
is  'No.1  But  the2r  are  the  basic  influence  for  the  greatest  az  punt  of  evil. 

There  are  many  other  abuses  that  must  be  discouraged  - and  it  will  be  done  by 
an  awakened  public  opinion  - by  a realization  that  economic  wastes  are  a burden 
upon  the  purchasers.  The  large,  flamboyant  advertisements,  filled  with  exag- 
gerated statements,  superlatives  that  are  beyond  belief,  are  destructive  to  ad- 
vertising and  insulting  to  the  public  intelligence....". 

In  another  advert isement~  he  says,  "That  is  a comparative  price? 

This  question,  which  is  frequently  asked,  can  be  best  answered  by  quoting  an 
advertisement  of  that  character  - for  example:  '$50  Suits  for  $30,'  '$4.00  Silk 
Hose  for  $1.98, ' etc. 

"Sometimes  the  claim  is  made  that  they  are  reduced;  other  times  a 
claim  is  made  of  greater  value;  in  all  instances,  they  are  comparative,  being 
based  on  past  history  or  present  opinions.  Te  found  many  years  ago  that  com- 
paratives could  not  be  used  without  affecting  the  truth  in  our  advertising. 

"The  fact  that  an  article  sold  at  a higher  price  on  a different  oc- 
casion does  not  establish  its  value.  Sugar  today  is  being  sold  at  7 cents  a 

pound.  Two  years  ago  it  sold  for  35  cents.  What  is  its  value  - 7 cents  or 

35  cents?  Can  we  find  any  basis  for  value  in  this  instance? 

1 Appearing  in  the  St.  Louis  Globe  - Democrat  of  February  23,  1922. 

2 Appearing  in  the  St.  Louis  Globe  - Democrat  of  February  21,  1922. 


25 

"Price  is,  or  should  be,  the  measure  of  the  cost  of  production  and 
distribution.  And  the  statement  that  any  article  has  a greater  value  than  the 
selling  price  is  merely  the  expression  of  an  opinion  - not  a fact. 

"Prices  are  always  reduced  for  a reason  - and  the  action  affirms  the 
fact  that  the  values  as  intimated  or  expressed  by  the  original  prices  no  longer 
exist,  that  conditions  have  created  the  lower  prices. 

"When  merchandise  is  sold  (like  every  other  commodity)  on  the  basis 
of  today’s  market  price,  no  matter  what  that  price  may  be,  there  will  be  a 
stabilization  of  advertising  which  will  result  in  a greater  degree  of  confidence 
and  lower  distributing  costs.  The  elimination  of  comparative  prices  is  the  first 
step  that  is  necessary  to  bring  about  this  ideal  condition  - and  it  will  not  be 
brought  about  until  the  public  thoroughly  understands  that  it  is  bearing  the 
burden  of  expense  caused  by  inefficient  advertising." 

In  Cleveland  a new  paper  - or  rather  advertising  medium  - has  been 
established  by  several  of  the  large  advertisers  called  the  "Shopping  Hews." 

The  distribution  is  free  every  Saturday  morning  and  its  aim  is  to  reach  every 
house  in  the  city.  The  paper  consists  entirely  of  advertisements  except  about 
one-third  of  the  first  page  which  contains  an  article  usually  setting  forth 
the  advantages  of  the  "Shopping  Hews"  to  the  Cleveland  buyers  and  telling  some- 
thing of  the  service  it  is  trying  to  perform.  It  claims  "Truthful  Advertising" 
and  "Guaranteed  Values."  The  principal  point  from  our  view  is  that  no  compara- 
tive prices  are  allowed  on  its  pages.  This  goes  to  show  to  what  extent  the 
campaign  against  their  use  has  been  carried. 

The  Better  Business  Bureaus  are  concerned  more  with  the  truthful 
use  of  comparative  prices  than  with  their  elimination;  they  take  the  . iddle 
ground.  They  state  their  position  as  follows "Comparative  prices  in  adver- 

1 Taken  from  the  pamphlet  "Truth  in  Advertising"  published  in  1921  by  the 

national  Vigilance  Committee  of  the  Associated  Advertising  Clubs  of  the  World. 
t , _Ijew  York  City. 


26 


tising  are  one  of  the  important  subjects  in  the  retail  field,  and  many  cases 
handled  "by  Setter  Business  Bureaus  involve  their  use.  The  I ruth- in- Advertising 
movement  is  opposed  to  the  abuse  of  comparative  prices  rather  than  tc  their 
legitimate  use.  If  a concern  uses  comparative  prices  truthfully,  it  suffers 
in  having  to  meet  the  competition  of  the  store  down  the  street  which  uses  them 
untruthfully."  This  atti  is  shown  by  a perusal  of  the  code  of  regulations 
of  one  of  the  bureaus-*-  which  is  typical  cf  the  field. 

ARTICLE  II 

"The  object  of  this  Bureau  shall  be  to  impartially  promote  and  further 
fair  competition  in  business,  especially  including  the  investigation  and  elimina- 
tion of  all  exaggerated,  misleading  or  fraudulent  advertising;  and  its  purpose 
is  to  promote  truth  in  advertising. 

ARTICLE  V 

"The  Bureau  in  its  investigation  is  to  be  guided  as  nearly  as  possible 
by  the  following  rules  governing  advertising: 

"(a)  Comparative  prices  and  value  statements  used  in  store  advertising 
shall  refer  to  the  price  of  the  merchandise  of  the  day  just  previous  to  the 
sale.  The  fact  that  the  merchandise  advertised  may  have  actually  sold  just 
previous  tc  the  sale  at  the  comparative  price  quoted,  is  no  excuse  for  such 
advertisement  in  the  event  that  the  comparative  price  or  value  does  not  reflect 
the  market  value  of  the  merchandise  at  the  time  of  the  sale. 

"(b)  The  words  'value*  or  'worth'  when  used  in  an  advertisement 
should  mean  the  reasonable  market  price  the  article  should  bring  at  the  time 
of  the  advertisement,  this  to  be  determined  by  what  the  same,  or  similar  article 
is  selling  for  in  other  stores  at  the  time  of  the  advertisement. 

"(c)  The  phrase  'up  to'  when  it  is  accompanied  by  a former  maximum 
selling  price  should  also  be  accompanied  by  the  former  minimum  selling  price  of 


1 The  Davenport  .(lev;  a) 


Consumers  Bureau. 


27 


the  ffierchanidse  included  in  the  sale.  For  instance:  When  the  merchandise  of- 

fered includes  oods  for  erly  priced  from  $10  tc  $22.50,  the  advertisement  should 
not  read,  'Formerly  priced  Ui  to  $22.50, ' hut  should  read,  ’Formerly  priced 
from  $10  to  $22.50.’ 

"(d)  'Originally'  c?nd  'Formerly'  should  mean  the  first  price  at  which 
the  goods  were  marked  in  the  advertiser's  store  during  the  current  season. 

"(e)  'Regularly'  should  mean  the  price  prevailing  before  the  sale  in 
the  advertiser's  store  on  the  specific  merchandise  mentioned  and  the  _rice  that 
will  prevail  on  the  same  merchandise  after  the  sale.'1 

Despite  the  growing  sentiment  against  it,  the  use  of  comparative 
prices  has  been  unusually  large  daring  the  last  two  years  - due,  no  doubt,  to 
the  declining  market . However,  the  leaders  in  the  war  on  such  statements  have 
not  relinquished  their  stand  and  still  refuse  to  quote  former  prices  cr  sup- 
posed values.  One  such  firm^  states  its  position  in  the  matter  as  follows: 

"It  has  long  been  the  policy  of  this  store  to  refrain  from  the  common 
practice  of  using  comparative  prices,  as  - 'Forth  212,  our  p rice,  $0.75.' 

"That  this  is  an  easy  way  to  show  a special  value  is  obvious,  but  its 
untrustworthiness  in  common  usage  is  well  known.  Standards  of  value  are  very 
elastic,  and  merchants  not  only  seldom  agree  on  prices,  but  are  forbidden  oy 
Federal  law  to  agree  upon  standard  prices . 

"Merchants  have  many  opportunities  to  buy  at  the  seller's  loss,  but 
we  hold  it  our  function  to  share  such  op>p or tuni ties  with  the  public,  so  the 
sp-ecial  price  becomes  our  proper  price. 

"To  mark  an  article  higher  than  necessary  for  the  sake  of  showing 
a sharp  reduction  later  is  plainly  a dishonest  practice  - it  can  succeed  only 
by  deception  - but  there  is  no  law  to  prevent  it. 

1 Marshall  Field  and  Company.  Taken  from  a letter  to  the  writer. 


”Vvhen  an  article  in  open  stock  is  reduced  it  imp  lies  a waning  demand 
at  the  former  price,  so  its  market  value  has  changed.  If  the  supply  is  limited, 
or  the  reasons  for  the  reduction  hear  no  relation  to  the  character  of  the  mer- 
chandise itself,  than  a reduced  price  may  justly  entitle  it  to  he  called  a 

'special  value.' 

"In  any  case,  however,  we  find  it  less  confusing,  and  more  straight- 
forward, to  quote  only  one  price,  which,  all  things  considered,  we  establish  as 
our  standard  price  at  the  time." 

The  main  argument  for  quoting  comparative  prices  is  that  if  a store 
has  a bargain  to  offer  the  public,  the  public  should  be  informed  and  given  all 
the  details.  It  is  only  fair  to  the  public  and  to  the  store,  Marshall  Field’s 
advertisements  sufficiently  answer  this  argument . They  have  held  many  cut-;,  rice 
sale 3 since  abandoning  that  form  of  drawing  trade  and  their  sales  have  not 
suffered  in  consequence.  No  former  prices  are  ever  quoted,  but  the  customers 
are  told  the  quality  of  the  goods  ani  the  fact  that  there  is  a special  offering 
of  them  at  this  time.  The  present  price  is  simply  stated  without  stressing  it 
or  putting  it  in  glaring  type.  At  t im.es,  but  very  seldom,  the  statement  is 
made  that  this  price  is  about  half  of  that  at  which  the  article  formerly  sold. 
That  is  the  nearest  reference  ever  made  to  the  former  price.  There  are  many 
ways  of  showing  that  a bargain  is  being  offered  without  giving  its  former  price 
or  value.  In  fact,  it  has  sometimes  been  claimed  that  one  of  the  greatest  ad- 
vantages in  doing  away  with  comparative  prices  is  the  educational  value  it  has 
upon  the  advertising  manager,  for  henceforth  he  must  make  his  advertisements 
really  attractive  and  readable  rather  than  merely  displays  of  comparative  prices. 

Beyond  question  comparative  prices  are  used  advantageously  in  some 
forms  of  advertising.  In  stores  where  goods  are  sold  u;  on  price  appeal  alone, 
the  listing  of  comparative  rices  probably  attracts  more  trade  than  any  other 


! 


kind,  of  advertisement  possibly  could.  Even  when  the  statements  are  not  believed 
the  advertisement  will  draw  customers,  for,  although  the  values  are  discounted, 
the  readers  will  often  go  to  see  for  themselves  what  the  value  really  is.  It 
is  a well  known  fact,  however,  that  customers  appealed  to  by  such  advertising 
are  the  kind  that  will  net  stick  to  a store  but  are  easily  drawn  away  by  the 
price  inducements  of  other  stores.  It  appears  from  a report  of  the  Research 
Committee  of  the  Dallas  (Texas)  Advertising  League^  that  such  advertising  in- 
fluences about  fifty  per  cent  of  the  consumers.  A questionnaire  sent  out  by 
the  committee  included  the  question:  "Do  prices  compared  with  one  another  appeal 

to  you...?"  The  answers  received  were  for  compared  prices  210;  against,  202, 
Those  against  the  compared  prices  believed  neither  price  to  be  authentic  or 
reliable.  Those  for  such  statements  qualified  their  preference  about  twenty 
per  cent  of  the  time  by  saying  that  the  reliability  of  the  firm  counted  with 
them. . 

This  is  a point  which  cannot  be  stressed  too  much  - the  reliability 
of  the  store  is  one  of  the  greatest  assets  it  has.  Call  it  "Good  Will," 

"Going  Concern  Value’"  or  whatever  you  will,  it  amounts  to  the  same  thing  and 
is  built  up  by  fair  dealings  with  the  public.  No  one  stops  to  question  a state- 
ment in  a Wanamaker  advertisement;  it  is  accepted  as  true  becau.se  the  store  has 
built  up  a wonderful  reputation  for  reliability.  On  account  of  p-.ossessing  this 
reputation  Wanamaker  is  able  to  quote  comparative  prices,  but  such  quotations 
are  very  scarce  and  extremely  conservative.  Conservatism  is  the  main  feature 
of  Wanamaker' s advertising  and  this  element  as  much  as  anything  else  has  helped 
build  the  enviable  reputation  of  the  store.  Few  stores  have  acquired  this 
valuable  prestige,  but  many  aspire  to  it,  even  if  on  a 3mall  scale.  Any  store 
which  aspires  may  help  its  case  materially  by  dispensing  with  comparative  price 
statements.  The  process  is  a long  one  at  the  best,  but  the  quickest  way  to 
1 Quoted  in  Judicious  Advertising,  April,  1920,  p.  62. 


30 


attain  the  goal  is  to  go  in  a straight  line  - ana  tnis  line  is  absolutely 
ful  advertising  which  merits  the  faith  ox  the  public . lucpsrience  has  shov.n  tha.t 
the  easiest  means  cf  building  up  such  faith  is  the  elimination  or  she  comparative 
price  which  engenders  i sunder  standing. 

The  arguments  against  the  quoting  of  such  prices  are: 

1.  They  are  not  a true  statement  of  facts  even  when  prices  are  not 
exaggerated.  The  fact  that  an  article  cnce  sold  ror  the  to^  price  that  -xes  not 
establish  its  value  at  that  figure.  Only  half  the  facts  are  told  and  sometimes 
that  is  worse  than  a plain  misstatement . The  price  of  an  articxe  is  the  resuxu 
of  various  conditions  in  the  market,  and  when  these  conditions  change  the  price 
changes  accordingly.  The  fact  that  merchandise  once  sold  at  a high  price  is 
no  more  reason  to  quote  that  price  than  to  quote  stock  as  cf  the  sans  value  it 
had  at  its  peak.  If  a broker  quoted  stock  as  $112  value  for  $67,  he  would  be 
laughed  out  of  business,  but  the  same  thing  happens  every  day  in  merchandising. 
As  one  advertiser  puts  it:"  "Vhen  the  fl.00  silk  stocking  started  on  its  price 
flight  during  the  war,  it  had  the  grace  and  dignity  to  bear  a $3.00  ticket; 
but  when  the  painful  process  cf  deflation  was  applied,  and  the  price  became 
$1.95  was  it  quite  right  to  advertise  it  as  $3.00  hose  for  $1.95?  ” e recently 

witnessed  the  price  of  the  former  $2,00  .ianhattan  Shirt  -armed  down  iron  $5.o'j 
to  $3.50.  How  should  this  fact' be  presented  to  the  public?  Arc  they  $5. 
shirt3?  It  is  our  impression  that  they  are  now  $3.50  shirts." 


2.  They  are  not  believed  by  the  public  and  thus  influence  the  atti- 
tude toward  all  other  advertising  put  cut  by  the  store.  A large  number  cf 
people  do  not  believe  comparative  price  statements  and  this  argument  is  based  up- 
on that  fact.  The  investigation  of  the  Dallas  Advertising  League  seems  to  show 
that  about  forty  per  cent  of  the  buyers  do  believe  the  quotations,  so  this  is 
not  an  argument  which  will  hold  in  all  cases.  However,  a store  cannot  afford 

1 T alien  from  an  advertisement  of  Stix,  Baer  and  Fuller,  which  appeared  in  the 
St.  Louis  Post-Dispatch,  November  24,  1920. 


31 


to  ignore  the  sixty  per  cent  who  do  not  "believe  the  comparisons  to  "be  true  in 
all  cases.  If  the  opinion  is  obtained  that  a store  has  "been  untruthful  in  part 
of  its  advertising,  the  entire  advertising  of  the  store,  and,  more  important, 
its  ’’Good  rill,  ” will  "be  affected. 

3.  They  put  a good  store  into  a poor  class.  Such  quotations  have 
"been  overdone,  especially  by  the  stores  selling  damaged  or  inferior  goods  and 
catering  to  a cheap  class  of  trade.  As  comparative  prices  are  used  in  the  ad- 
vertisements of  a great  many  stores,  the  general  appearance  is  similar  to  the 
advertisements  of  the  class  of  stores  mentioned  above.  This  condition  may  be 
remedied  with  care,  however.  The  continuous  use  of  such  statements  does  class 
a store  as  a rather  sensational  advertiser  and  so  places  a stigma  upon  its 
prestige  with  the  more  conservative  readers. 

4.  They  are  too  often  exaggerated  and  thus  lead  to  unwarranted 
statements.  This  is,  no  doubt,  the  principal  reason  why  this  form  of  advertising 
is  not  more  generally  believed.  Unscrupulous  merchants  have  made  great  use  of 
comparative  prices  in  order  to  attract  trade,  and  there  is  no  gainsaying  the 
fact  that  some  of  the  reductions  have  been  unbelievable.  Even  among  merchants 
who  intend  to  be  strictly  honest  it  is  a hard  matter  to  check  up  on  all  the 
statements  made  in  a large  advertisement  comprising  articles  of  every  descrip- 
tion. Of  course  it  is  possible  to  do  so,  but  several  of  the  stores  which  have 
discontinued  comparisons  state  that  the  difficulty  of  keeping  them  absolutely 
true  was  the  chief  reason  for  discarding  them  altogether.  Some  of  the  higher 
class  establishments  which  strive  earnestly  for  truth  have  printed  announcements 
of  error  in  some  of  their  former  quotations  and  state  that  they  are  ready  to 
refund  the  purchase  price  tc  any  buyer  who  was  mislead  by  the  erroneous  comparison 

This  shows  what  a difficult  matter  it  is  for  even  the  most  careful, 
and  those  who  are  not  so  punctilious  have  many  opportunities  to  err.  The  way 


32 


those  quotations  have  "been  handled  in  the  past  has  laced  them  in  disrepute  and 
discredited  their  use  at  the  present. 

5.  It  is  often  hard  to  tell  true  values  and  this  fact  leads  to  mis- 
statements also.  When  merchandise  is  bought  at  special  prices  for  a sale  or 
when  a new  class  of  merchandise  is  brought  in,  it  is  often  very  hard  to  place 

a definite  value  upon  it.  Usually  it  is  valued  according  to  some  similar 
article  which  is  already  in  the  store,  but  that  is  not  always  an  exact  basis 
upon  which  to  quote  a price  as  differences  in  weave  or  style  may  make  an  en- 
tirely different  appeal  to  the  public.  It  is  almost  impossible  to  place  a true 
value  upon  a large  quantity  of  such  goods  and  consequently  misrepresentations 
are  common.  Naturally,  disappointment  results  and  the  advertising  of  the  store 
is  hurt. 

6.  To  keep  up  public  interest  in  such  bargains  the  values  have  to 
be  increased  each  time,  and  this  leads  to  poor  merchandising.  The  staple, 
standard  products,  which  form  the  basis  of  a store's  prosperity,  are  neglected 
and  job  lots  of  all  sorts  of  irregular  merchandise  are  secured  for  sales  pur- 
poses. Large  discounts  can  be  quoted  cn  this  class  of  goods  and  the  reduction 
looks  very  larce  while  in  realit3r  there  is  no  reduction  at  all . No  store  can 
long  subsist  on  this  kind  of  merchandising  alone;  consequently,  the  result  of 

the  unrestriuted  use  of  comparative  prices  is  detrimental  to  the  best  merchandis- 
ing principles. 

7.  They  defeat  their  own  purpose  in  a period  of  falling  prices  for 
they  influence  purchasers  to  hold  off  longer  until  prices  drop  more.  This 
argument  is  given  in  an  article  appearing  in  "Printers'  Ink1,  entitled,  "Nrice 
Advertising  in  a Falling  Market. "A  The  substance  of  the  article  is  as  follows: 

There  is  a danger  in  using  price  comparisons  if  carried  too  far  or  emphasized 
too  much,  for  it  is  liable  to  make  the  consumer  think  that  he  has  been  the 


1 Printers'  Ink, 


September  13,  1217,  p.  121. 


33 


victim  of  profiteering  and  also  make  him  believe  that  prices  are  going  to  fall 
still  farther.  Thus  the  very  aim  of  advertising,  which  is  to  start  the  consumer 
buying  again  freely,  is  liable  to  be  defeated.  It  is  a better  policy  to  show 
only  the  true  value  of  the  goods. 

8.  They  tend  to  make  the  advertising  copy  drab  and  uninteresting. 

It  is  claimed  that  the  advertising  manager  falls  into  the  habit  of  describing 
the  goods  merely  by  quoting  their  former  price  rather  than  giving  details  about 
them  that  make  the  cox^y  interesting  and  hold  the  attention.  It  is  an  easy 
matter  to  describe  an  article  by  giving  its  former  price.  Advertising  anagers 
who  have  given  up  the  practice  say  that  they  did  not  realize  how  vouch  they 
relied  upon  comparative  prices  to  furnish  their  descriptions  until  after  they 
step  ed  their  use.  Then  it  was  necessary  really  to  put  some  thought  into  the 
copy  and  make  it  draw  the  attention  of  the  casual  reader. 

The  effect  of  discontinuing  such  advertising  is  told  by  hr.  Sidney 
H.  Baer,  of  Stix,  Baer  and  Fuller.  He  says:^  "This  policy  has  now  been  in  force 
for  almost  a year,  and  our  business  has  increased  in  greater  percentage  than  in 
any  previous  year  of  our  history.  It  is  true  that  conditions  are  abnormally 
good,  and  this  undoubtedly  has  something  to  dc  with  it;  but  even  sc,  had  there 
been  any  ill  effects,  it  would  have  been  noticeable  in  seme  instances.  Our  big 
sales  have  been  bigger  than  ever. 

"The  elimination  of  comparative  prices  is  of  great  benefit  to  a de- 
partment store  or  specialty  house,  not  only  because  it  undoubtedly  increases 
the  confidence  of  the  public  in  a store  (as  was  evidenced  in  our  case  by  hundreds 
of  letters  received  from  customers  congratulating  us  u on  cur  progressive  move), 
but  unconsciously  decreases  the  number  of  'sales’  and  'supposed  to  be  sales' 
held  - a form  of  business  getting  which  has  been  greatly  overdone  during  the 
past  decade." 


1 Printers'  Ink,  i ember  13,  1917,  p.  131. 


34 


The  use  of  comparative  prices  in  national  advertising  takes  a slightly 
different  aspect.  There  the  problem  is  not  one  of  temporary  reduction  to  get 
rid  of  surplus  stock,  but  is  one  of  a reduction  of  a single  article,  which  is 
thoroughly  known  to  the  public,  to  meet  changing  economic  conditions.  In 
national  advertising  the  price  is  more  closelj/  associated  with  the  intrinsic 
value  of  the  article  and  the  relation  of  price  to  value  is  more  easily  determined. 
Reductions  in  prices  are  necessarily  fewer  in  number  and  therefore  constitute 
real  news  for  the  consumers.  Generally  the  new  price  is  the  thing  stressed  and 
net  the  reduction.  There  can  be  no  exaggerated  statements,  for  the  former  prices 
are  definitely  known  and  there  is  no  question  felt  concerning  their  veracity. 

The  free  use  of  comparative  prices  may  have  the  effect  of  causing  some  prospective 
customers  to  hold  off  a while  for  a further  drop,  but  on  the  other  hand,  a large 
number  of  buyers  are  drawn  in  immediately  because  of  the  novelty  of  the  price. 

One  effect  which  is  hard  to  eradicate  is  the  belief  that  the  product  is  being 
cheapened  in  quality.  This  is  a problem  for  the  bod;/  cf  the  advertisement  to 
settle,  however. 

The  problem  takes  on  another  aspect  also  in  the  handling  cf  price  tags 
and  window  display  c-m.  This  is  largely  a matter  of  store  . - - *ence.  If 
comparative  prices  are  used  in  the  newspapers  the  same  general  scheme  should  be 
carried  out  throughout  the  store,  but  if  they  have  been  eliminated  it  then  be- 
comes a matter  of  store  policy  how  far  they  should  go.  Window  displays  may  be 
taken  as  a supplement  to  the  regular  advertising  and  the  best  policy  seems  to  be 
to  follow  the  same  custom.  If  comparisons  are  eliminated  in  the  newspapers  and 
still  continued  in  the  window  displays  it  is  likely  10  create  unfavorable  com- 
ment as  it  seems  to  be  inconsistent,  to  say  the  least.  On  the  other  hand,  the 
price  tags  on  the  goods  themselves  are  not  supposed  to  be  for  general  display 
outside  the  store  and  the  original  tags  may  be  left  on  the  goods  and  marked 


35 


down.  Marhsall  Field's  follows  this  practice.  There  is  one  disadvantage  to 
it,  however,  The  customers  are  liable  to  look  over  the  goods  to  find. the  one 
with  the  highest  price  and  then  buy  that.  This  will  cause  a great  deal  of 
"shop  wear”  and  may  result  in  some  disappointed  purchasers.  Usually  those  goods 
with  the  lowest  price  tags  are  left  to  the  last.  Strict  consistency  would  seem 
to  demand  that  the  former  price  tag  be  eliminated  also,  but  as  a matter  of  fact 
it  is  so  closely  connected  with  the  goods  themselves  that  this  inconsistency 
does  not  appear  obvious.  However,  nothing  is  lost  by  the  elimination  of  the 
former  price  on  the  tags. 


35 


III  ODD  .PRICES 


In  advertising  the  copper  cent  cones  into  its  own  and  assrn.es  an  im- 
portance which  it  can  never  hope  to  attain  over  the  retail  counter.  Buyers  who 
wovdd  consider  it  Beneath  their  dignity  to  "quibble  ov ar  a few  pennies”  with  the 
retail  clerk  will  minutely  compare  the  prices  advertised  in  the  local  paper,  and 
woe  Be  to  the  store  which  is  selling  sugar  one  cent  a pound  higher  than  its  com- 
petitor. The  tendency  to  compare  the  prices  of  various  stores  also  leads  to  the 
comparison  of  the  stated  price  with  some  other  price  in  the  Buyer's  mind.  This 
fact  is  the  cause  of  the  pulling  power  of  odd  prices,  for  whether  any  redaction 
is  claimed  or  not  83  cents  almost  invariably  suggests  a mark-down  from  Tl. JO, 
while  11.93  suggests  $2.00,  $2,50  or  $3.00,  depending  upon  the  imagination  of  the 
reader.  The  statement  of  an  odd  price  generally. implies  a reduction  and  the  mind 

tries  to  grasp  the  previous  figure. 

During  the  recent  war,  when  prices  were  advancing  rapidly,  the  odd 
price  was  nothing  But  a mark-up  and  did  not  pretend  tc  Be  anything  else;  12  and 
13  cents  signified  a former  price  of  10  cents,  nven  under  such  conui ^icn^,  mow- 
ever,  the  odd  price  was  considered  preferable  to  an  even  price  which  was  thought 
to  Be  higher  - in  this  case  10  cents  was  often  considered  as  a mark-up  from  a 
nickle . Under  normal  conditions  the  hint  of  a mark-up  casts  an  odium  upon  certain 


figures  which  makes  them  unsuitable  for  use;  thus  2?  cents  seems  to  oe  a ir.arm.-up 
from  a quarter  and  probably  more  goods  could  Be  sold  if  the  price  were  placed  at 

25  or  30  cents. 

Tc  Be  odd,  a price  does  not  necessarily  have  to  Be  quoted  in  odd 
cents;  012 • *5  is  an  odd  rice  as  is  $lo95  also,  -he  t ind  creates  . on. 
values  into  convenient  units  which  are  easily  remembered  and  calls  _ rices  dealing 
in  such  units  even  or  regular,  while  all  others  are  od. • -he  units  will  varj 
greatly  with  the  amount  of  the  price  and  no  set  rule  can  Be  easily  formulated  as 


3? 


the  practice  cf  calling  prices  even  cr  odd  varies  son.ewhat  at  ong  the  different 

trades. 

Formerly  odd  prices  were  used  almost  exclusively  by  mail-order  houses, 
department  stores,  and  chain  stores,  but  at  the  present  time  they  are  used  in 
practically  every  field  of  retail  selling.  They  have  come  to  be  the  symbol  of 
the  bargain  sale  cr  the  cut-price  dealer.  It  is  sQT.ietir.es  humorously  said  that 
a certain  class  of  our  retail  merchants  cannot  express  themselves  in  round  num- 
bers but  must  say  "three  ninety-eight"  instead  of  "fore"  on  the  golf  course. 

Their  use  has  been  frequently  ridiculed  and  freely  criticized  but  nevertheless 
they  continue  to  draw  trade  as  much  as,  or  more  than  ever,  hail-order  catalogues 
abound  with  such  figures,  in  fact  it  is  hard  to  find  an  even  rice  within  their 
covers.  They  have  even  invaded  the  field  cf  the  more  expensive  articles  and  now 
automobiles  are  almost  invariably  listed  at  an  odd  figure.  Whereas  in  the  early 
days  of  the  rotor  car  the  prices  ran  "1,000,  $1,250,  1,500,  $2,0 00  and  sc  on, 

at  the  present  time  they  read  $985,  $1065,  $1345,  $3185,  etc.  One  of  the  most 
recent  converts  is  a large  hotel  in  Chicago,^  which  advertises  rooms  at  $1.95 
and  $2.45  a day. 

The  almost  universal  use  of  odd  prices  by  the  automobile  manufacturers 
is  rather  hard  to  explain;  the  figures  are  hard  to  remember  and  generally  give 
very  little  basis  for  a comparison  with  some  higher  price.  Possibly  the  idea  is 
to  create  a distinctive  price  as  very  few  automobiles  bear  the  same  quotations. 

An  odd  figure  also  seems  to  indicate  that  the  price  has  been  laced  as  low  as 
possible  and  is  only  slightly  above  cost  of  production.  Where  this  is  the  case 
it  is  advantageous  to  both  the  producer  and  the  consumer  for  the  former  makes  a 
Just  profit,  while  the  latter  obtains  the  article  at  a fair  price. 


1 The  Fort  Dearborn  Hotel. 


3b 


The  psychology  of  the  odd  price  is  peculiar,  not  infrequently  the 
saine  article  will  sell  inore  readily  at  a nigher  odd  price  than  at  tne  standar a even 
amount.  For  example,  a product  which  t.  oves  slowly  at  75  cents  ..ay  be  u.arxe.i  ao 
79  cents  and  sell  rapidly;  regular  dollar  articles  that  remain  on  the  shelves 
may  sell  out  in  a day  when  listed  as  $1.19.  The  use  of  odd  prices  does  not  al- 
ways guarantee  sales,  however,  and  if  quoted  in  profusion  they  may  do  more  detri- 
ment than  good.  They  are  usually  considered  an  indication  of  cheapness  and  con- 
sequently are  not  in  harmony  with  a quality  appeal.  .lOreover,  a ce:t.^j.n  cl^o; 
of  shopvers  has  an  adversion  to  ■'uneven  prices,  so  the  best  results  are  obtained 


when  they  are  used  sparingly. 

The  question  of  the  optimum  price  is  an  important  one  and  well  worth 
a scientific  study,  but  very  little  has  been  done  in  that  field.  The  large  de- 
partment stores  and  mail-order  houses  ordinarily  follow  ^:-e  custom  oj.  a.1  lowing 
their  buyers  full  authority  in  pricing  the  goods  for  sale,  ho  standard  policy 
is  used;  sometimes  a definite  per  cent  of  mark-up  is  used,  while  in  other  cases 
the  figure  is  arrived  at  arbitrarily.  'One  of  the  few  experiments  made  to  deter- 
mine the  preference  for  certain  prices  was  given  to  /ringer  s'  Ink  oj  a cor- 
respondent signing  himself  "F.  '£.  V.’. " He  writes: 

"...  During  an  experience  of  years  in  running  the  catalogue  end  of 
a business,...,  my  associates  and  I made  numerous  experiments  m the  realo  oj. 


price  psychology*  Being  fearful  at  first  of  quoting  prices  on  certain  classes 
of  articles,  usually  priced  in  twenty-five-cent  units,  in  oda  cents,  such  as 
48  cents,  S8  cents,  $1.49,  etc.,  we  tried  breaking  prices  in  five-cent  units, 
quoting  95  cents,  90  cents,  45  cents,  55  cents,  ,1*35,  $3.  .5,  etc.  e found, 
among  other  things,  that  35  cents,  40  cents  and  85  cents  were  excellent  odd 
prices;  45  cents,  60  cents,  65  cents  and  95  cents,  were  not  so  good,  though  usable, 
but  that  55  cents,  70  cents,  80  cents  and  90  cents  seemed  to  scare  the  public  in 
1 "The  Advertised  Price  and  the  Public."  Printers'  Ink,  June  20,  1918,  p.  33. 


many  cases.  They  seemed  not  to  have  any  standard  of  value  to  i ensure  against 
these  prices;  they  were  bewildering. 

"Our  discovery  of  the  success  of  the  85  cent  price  solved  a problem 
that  had  been  bothering  us  for  some  time  in  connection  with  one  of  the  higher 
grade  departments  of  the  catalogue.  This  problem  was  what  to  do  about  articles 
that  cost  just  too  much  to  sell  for  75  cents  at  sufficient  profit,  when  mailing 
and  packing  costs  were  considered,  and  yet  were  not  worth  a dollar..., 

"Of  course  in  certain  departments  of  our  catalogue,  which  I repeat 
was  a very  high-grade  one  going  to  a select  .ailing  list,  five-cent  . rice  units 
had  always  been  used,  for  they  conformed  to  the  ^rade  practice  in  those  lines. 

But  in  these  departments  we  again  broke  with  the  traditions  of  the  trade  and  began 
experimenting  in  odd  cents  - 23  cents,  4S  cents,  98  cents,  99  cents,  $1.19,  etc. 

"It  may  interest  other  mail-order  advertisers  to  learn  the  conclusion 
we  came  to  in  connection  with  these  prices:  We  decided  after  trying  all  sorts  of 
odd  prices,  that  anything  less  than  a two-cent  reduction  seemed  like  a bait  and 
not  like  a genuine  penny-saving  reduction.  I cannot  s :.y  that  we  learned  this 
from  sales  corves,  or  anything  so  definite,  but  we  certainly  ’felt'  it  before  we 
had  operated  long  with  odd  prices,  and  we  did  away  with  24  cents,  49  cents  and 
95  cents,  and  all  prices  of  a dollar  or  more  ending  in  these  figures.  But  we 
found  23  cents,  43  cents  and  38  cents  very  good  and  continued  to  use  them  regular- 
ly, but  not  too  freely.  Not  only  doss  an  overdose  of  cot  prices  make  people  sus- 
picious, but  it  loses  to  the  catalogue  the  benefit  of  the  contrast  between  98 
cents  and  $1.00,  and  48  cents  and  50  cents  which  contrast  is  what  makes  the  odd 
price  effective.  To  overdo  the  odd  price  is,  in  effect,  to  kill  the  goose  that 
lays  the  golden  eggs. 

”... While  we  found  that  in  certain  departments  of  our  particular  cat- 
alogue 55  cents,  70  cents,  80  cents  and  99  cents  seemed  to  be  bad  prices,  these 


4C 

units  after  $1.00  or  $2.00  (and  up),  such  as  $1.70,  $4.90,  etc ., ware  not  necessarily 
objectionable . Their  aspect  seemed  often  to  change  in  such  cases  and  make  them 
lock  very  bar gain- like.  For  instance,  $3.55  may  look  like  a lower  price  in  con- 
nection with  some  certain  article  than  33.50.  Round  numbers  seer:,  to  have  a 
tendency  to  look  big  when  the  price  gets  up  into  several  dollars. 

"After  ail,  making  right  prices,  like  writing  good  advertiser  ents,  is 
a matter  of  getting  away  from  the  goods  and  projecting  oneself  into  the  irrespec- 
tive purchaser's  mini  and  looking  at  your  own  catalogue  or  counter  through  his 
or  her  eyes.  You  may  know  yourself  that  such  ar.d  such  an  article  is  a genuine 
bargain  at  a given  price  - even  that  you  are  losing  money  on  it  - but  your  say- 
ing it  is  a bargain  will  have  far  less  selling  force  than  making  the  price  look 
the  part,  not  by  always  mechanically  falling  back  on  43  cents  or  SS  cents,  etc., 
but  by  making  the  price  look  reasonable  or  low  in  connection  with  the  particular 
article  featured. 

"There  is  one  thing  I have  observed,  however,  and  it  is  this:  that 
the  man  who  goes  about  this  pricing  business  with  his  tongue  in  his  cheek,  clever- 
ly working  with  odd  prices  and  thinking  that  he  has  discovered  a scientific  system 
for  fooling  the  public,  soon  finds  that  the  public  is  much  wiser  than  he  thought 

for .... " 

An  experiment  conducted  in  the  psychology  laboratory  of  the  University 
of  Illinois  to  determine  the  preference  for  certain  numbers  obtained  results  which 
corresponded  well  with  those  just  given,  although  there  were  cases  where  the  dif- 
ference was  marked,  numbers  from  1 to  100  were  used  and  paired  in  various 
sequences;  they  were  then  expos -.l  to  the  observers  in  a Fhip  le  tachistoscope  for 
a period  of  1/200  cf  a second.  The  observers  were  asked  to  write  down  their 
preferences,  talcing  one  number  from  each  pair  as  it  was  shown.  The  numbers  were 
shifted  about  and  the  experiment  repeated  several  times.  The  observers  showed 


41 


decided  preference  for  the  numbers  5,  10,  20  and  50.  Others  numbers  which  were 
good  were:  1,  2,  4,  8,  11,  39,  41,  45,  48,  49,  59,  77  and  79.  70  and  90  were 

fair.  The  numbers  which  were  found  poor  were  4,  7,  9,  18,  23,  52,  67,  59,  71, 

97,  30  and  especially  50  and  80. 

V/hile  this  experiment  was  intended  to  show  the  preference  for  certain 
numbers  rather  than  prices,  the  results  are  important  in  connection  with  the 
problem  of  pricing  as  well.  Those  numbers  for  which  a preference  was  shown  are 
the  best  ones  to  use  as  prices  for  they  attract  the  attention  readily  and  create 
a pleasing  impression.  The  numbers  for  which  there  was  a decided  laci:  of  prefer- 
ence should  be  avoided  as  much  as  possible  in  pricing  goods.  The  two  numbers, 

50  and  80,  are  notoriously  bad  prices  and  are  seldom  used  in  that  capacity.  How- 
ever, some  articles  are  priced  with  these  figures,  and  then  the  erchant  wonders 
why  the  goods  do  not  move  faster.  These  numbers  are  not  an  infallible  rale  to 
follow,  but  they  do  show  a choice  for  certain  figures  which  cannot  be  entirely 
overlooked. 

One  of  the  important  points  which  must  be  considered  when  uneven 
prices  are  used  freely  is  the  appearance  which  they  make  upon  the  page.  There  a 
large  number  of  such  prices  appear  together  it  is  a good  policy  to  have  quite  a 
variety  and  range.  Thus  talcing  a page  from  a mail-order  catalogue  where  women’s 
suits  are  offered  for  sale  there  may  be  twelve  different  models.  The  prices  on 
these  should  have  a range  of  several  dollars  and  not  imore  than  one  or  two  should 
end  in  the  same  number  of  cents,  say  42  or  65  cents. 

Another  point  which  has  been  found  to  influence  sales  is  the  arrange- 
ment of  the  articles  on  the,  page.  Talcing  the  same  mail-order  page  for  example 
and  assuming  that  the  prices  run  from  £3.45  to  $13.70  with  the  model  which  the 
firm  wishes  to  push  most  priced  at  $3.90,  the  best  results  will  be  obtained  by 


placing  the  $6.45  model  close  to  the  one  at  $9.90.  This  model  is  c the 


I 


42 


"beginning  number"  as  it  is  the  lowest  priced  on  the  pa/  e and  it  begins  the  price 
range*  Of  coarse  the  feature  model  . 9.90  is  given  good  position  and  generally 
a border  p laced  about  it;  but  the  comparison  with  the  beginning  rice  is  the  thing 
which  brings  the  results.  Most  people  like  to  buy  a little  better  then  the  cheap- 
est article. 

In  dealing  with  odd  prices  the  thing  to  be  most  avoided  is  the  appear- 
ance of  a mark-up;  the  nature  of  the  fig-ore  may  show  a raise  as  well  as  a decline. 
Thus  25  cents  seems  to  be  25  plus  1,  while  57  cents  appears  to  be  made  up  of  65 
and  2.  It  is  best  to  drop  a cent  or  two  from  an  even  number  and  thus  ke 
appearance  of  a reduction.  It  is  little  things  like  these  that  influence  the 
attitude  of  the  public  toward  a store. 


4-3 


IV  STATISTICAL  DATA. 

In  order  to  determine  the  effect  of  business  conditions  upon  the 
quoting  of  prices  in  advertisements,  and  also  to  ascertain  if  there  had  been  any 
definite  trend  in  their  use,  an  historical  study  was  made  of  the  advertisements 
appearing  in  the  Saturday  Evening  Post  over  a period  of  thirteen  years.  As  the 
task  would  be  monumental  to  count  all  the  advertisements  published  during  that 
time,  the  months  of  Hay  and  June  were  taken  as  being  typical  of  the  advertising 
for  the  entire  year.  These  months  were  selected  because  they  represent  the  con- 
ditions of  the  spring  trade  and  yet  are  late  enough  to  show  the  tendency  of  the 
entire  year.  The  Saturday  Evening  Post  was  selected  ever  all  other  publications 
because  it  best  represents  the  national  advertising  conditions  of  the  country. 
Practically  all  lines  of  goods  are  included  in  the  advertising  on  its  pages.  It 
is  a general  magazine  which  appeals  to  both  men  and  women  of  all  classes  and  its  . 
circulation  is  both  large  and  widely  distributed.  It  has  come  to  be  the  standard 
advertising  medium  of  nationally  sold  products. 

Of  course  this  work  with  the  Saturday  Evening  Posts  embraced  only 
national  advertising,  but  such  copy  would  reflect  the  business  conditions  of  the 
nation  better  than  local  advertisements.  To  Chech  up  on  any  changes  in  the  style 
or  character  of  price  statements  a large  number  of  local  newspapers  was  used,  but 
no  effort  was  made  to  keep  a record  of  the  per  cent  age  of  advertisements  quoting 
prices  in  such  publications.  As  would  be  expected,  prices  are  much  more  prevalent 
in  local  advertising  as  it  is  closer  to  the  consumer.  In  other  respects  the  local 
copy  follows  closely  the  changes  in  the  national. 

In  making  the  study  of  the  advertising  in  the  Saturday  Evening 
Posts  no  distinction  was  made  in  the  size  of  the  advertisement,  all  were  counted 
equally;  but  there  were  some  exclusions  made  which  should  be  noted.  The  advertise- 


44 


Kent s appearing  on  the  tack  of  the  magazines  were  not  counted,  as  they  represent 
more  the  poster  style  of  advertising  than  the  magazine  style.  ITo  advertisements 
for  salesmen  were  considered  for  obvious  reasons.  The  announce: sent s of  education- 
al institutions  were  also  eliminated  as  they  do  not  serve  quite  the  same  purpose 
as  do  advertisements  which  sell  goods;  the  product  they  strive  tc  sell  is  intang- 
ible and  cannot  be  classed  with  a manufactured  article.  Generally  the  advertise- 
ment merely  advises  the  reader  tc  write  for  a catalogue  in  order  to  obtain  further 
information;  it  does  net  go  farther  and  strive  to  complete  the  sale  at  that  time. 
Then,  such  advertisements  appear  but  once  or  twice  a ye  or , once  in  June  and  again 
in  August  or  September,  so  it  would  not  be  quite  fair  to  count  them  in  with  ad- 
vertisements appearing  steadily  throughout  the  year.  Advertisements  of  a similar 
nature,  those  selling  a service  rather  than  a product  - such,  as  these  which  sell 
legal  service  in  securing  patent  rights  - were  left  out  also.  The  total  of  all 
these  is  not  considerable  when  taken  in  connection  with  the  amount  remaining,  but 
it  is  necessary  to  mention  them  here  in  order  to  get  a clear  understanding  of  the 
advertising  which  goes  to  make  up  t’* e tables. 

All  the  advertisements  were  divided  into  five  classes  according  to 
the  products  advertised.  These  divisions  were  for  copy  which  advertised,  (l) 
automobiles,  (3)  wearing  apparel,  (3)  household  articles  and  food  products,  (4) 
automobile  accessories,  and  (5)  miscellaneous  products  not  previously  classified. 
The  tabulation  was  made  according  tc  whether  the  advertisement  included  a price 
or  not.  If  more  than  one  article  was  listed  in  the  sane  advertisement  the  entire 
group  was  considered  as  a whole  and  counted  as  only  one  advertisement. 

For  purposes  of  graphical  representation  it  was  found  best  tc  take 
the  percentages  of  advertisements  whicl  did  not  quote  prices.  These  percentages 
are  given  by  years  for  the  various  classes  of  products  chosen  and  for  all  advertise 
rnents  together,  he  separate  percentages  ere  given  for  the  miscellaneous  proc 


. 


. 

. 

. . 


• 


. 


45 


■because  they  are  so  varied  in  nature  that  comparisons  would  not  indicate  anything 
specific  which  is  not  shown  by  the  percentages  for  all  advertisements.  They  are 
included  in  figuring  the  perc  es  for  all  advertisements,  however.  Tie  table 

follows : 


Percentages  cf  Advertisements  Appearing  in  the  Saturday  Evening 


Post 

'’hie 

h do  not 

Inc] 

.ude  Price  State’ 

ent  s . 

Year 

Aut  ernob : 

Lies 

Tearing 

Household 

Ant  omob i 1 

a 

All  advertise 

Apparel 

Articles 

Accessor i 

9 S 

ment  s 

1910 

42 

23 

50 

83 

45 

1911 

33 

27 

45 

79 

47 

1912 

39 

22 

54 

72 

55 

1913 

17 

16 

47 

76 

47 

1914 

13 

IS 

46 

64 

4-1 

1915 

13 

17 

50 

48 

43 

1916 

IS 

25 

53 

54 

50 

1917 

15 

43 

54 

53 

52 

1918 

63 

55 

59 

30 

51 

1919 

55 

SO 

54 

84 

71 

1920 

93 

81 

79 

34 

83 

1921 

59 

75 

68 

74 

71 

1922 

29 

54 

64 

50 

59 

The 

se  p 

er  cent  ages  are  si 

■own  by  graph 

s on  the  accompany] 

ng  charts. 

Chart 

I s'1' 

ows  the 

four 

classes  of  spec: 

.fic  products 

compared,  whi 

le  Ch 

art  II  com- 

pares 

the 

graph  of 

all 

advertisements  v 

irith  Tab  son's 

barometer  of 

busir 

ess  condi- 

tions. 


As  will  he  seer,  by  Chart  II  there 
between  the  business  barometer  and  the  number  of 


is  a remarkable  resemblance 
advertisements  which  do  not 


43 


cnaote  rrices.  T"- i s similarity  shows  conclusively  that  the  use  of  prices  pretty 
regularly  follows  the  business  cycle;  when  conditions  are  poor  and  buying  is 
slack  prices  begin  to  appear  in  profusion,  but  when  conditions  improve  and  the 
public  comes  into  the  market  without  being  urged  the  large  national  advertisers 
keen  the  price  in  the  background.  This  condition  is  ■ irrored  in  the  local  ad- 
vertising as  well.  Thus  we  may  draw  the  conclusion:  In  a buyers'  market  quote 

prices;  in  a sellers'  market  let  them  alone. 

These  charts  substantiate  the  contention  that  the  statement  of 
prices  does  stimulate  buying.  Under  conditions  where  the  seller  does  not  need 
to  worry  about  his  purchasers  he  does  not  go  cut  after  them;  but  such  conditions 
are  rare,  ’"here  competition  is  keen,  the  statement  of  p rices  is  one  of  the 
quickest  ways  to  draw  trade. 

Of  course  a sellers'  market  is  one  in  whicn  the  price  is  contin- 
ually rising  and  this  is  another  reason  why  prices  are  left  cut.  He  one  li.ee s 
to  be  the  bearer  of  bad  news  and  the  advertisers  are  no  exception.  They  pass 
along  the  telling  to  the  retailer  who  can  net  dodge  the  responsibility,  ’hen 
unices  are  tumbling  the  advertisers  flaunt  the  fact,  however. 

The  rise  in  the  percentage  of  advertisements  not  quoting  prices 
is  especially  noticeable  in  the  graphs  of  automobiles  and  wearing  apparel,  those 
products  in  which  the  most  ranid  and  far-reaching  advances  took  place  during  the 


period  of  the  war. 


TT  „ 1 


line  snows 


trend  unmistakably,  but  it  is  net  ac- 


centuated  to  the  degree  that  it  is  in  the  higher  rice l articles.-  These  two  lines 
were  the  ones  in  wl  icl  ' e gi  eatest  buying  fever  occurred  also. 

A stud;/  of  the  graph  representing  all  classes  of  advertiser  ents 
reveals  a slight  rise  in  the  percentage  not  quoting  prices  for  the  year  1912, 
without  a corresponding  rise  in  the  Babson  chart.  This  year  marked  ..  distinct 
change  in  the  character  of  the  advertising  copy,  due  to  the  introduction  of  a 


47 


greater  an ount  of  institutional  advertising;  consequently  th< 
sicnal  rather  than  economic.  Erom  that  year  on  institutic 
a major  role  in  national  advertising. 

Another  feature  of  the  copy  which  has  become  : 
fest  is  the  clear-cut  statement  of  prices.  Whereas  the  gric- 
hidden  away  in  small  type,  some  'lace  within  the  confines  of 
the  present  time  they  are  placed  separately  and  often  given  • 
positions. 


: cause  is  profes- 
ccTiy  has  occu;  ied 

ncreasingly  n.ani- 
:s  were  formerly 
the  "talk,  " at 
■he  roost  prominent 


1910  'll  '12  '13  >14  '15  '16  '1?  '13  '19  ' 


O J 


, 


cXX  o 


48 


bibliography. 

Chor  inset  on,  ’’Advertising  as  a Business  Perce”,  g.  15 
De  Weese,  ’’Practical  Publicity”,  p.  104. 

Edgar,  ”Eow  to  Advertise  a Pet  ail  Store”,  pp.  21,  33,  51. 

Fowl er , ’’Fowl er  ' s Pub  1 i ci ty " . 

Gale,  ”0n  the  Psychology  of  Advertising”. 

Me  aland,  ”Effective  Store-Advertising’.’. 

McDonald,  ”Succe ssfv.1  Retai-'  Advertising”,  pp.  15,  145. 

McDonald , "Shcceesful  Advertising”,  p.  9,  117. 

Mattress,  ”How  a Retail  Merchant  Shoi  1 d Advertise”,  p*  . 4,  41. 

Opdycke,  ’’Advertising  and  Selling  Practice”,  p.  181. 

Osbcrn,  ’’Brass  Tacks  cf  Advertising”,  . 47. 

Russell,  ’’Advertising  Methods  and  Mediums”,  p . 355. 

Periodic  als 

Printers’  Irk: 

September  13,  1017,  p.  121  - ' y Comparative  Brices  Must  Go.” 

May  23,  1513,  p.  10  - "The  ’ Thy ’ of  Odd  Prices  in  Catalogues-” 

June  20,  1918,  p.  33  - "Toe  Advertised  Price  and  the  Public.” 
September  1G,  1920,  p.  41  - "How  Much  ’Bill  It  Cost?  Does  Your 
Advertising  Tell?” 

I'Tov ember  4,  1920,  p.  182. 

ITov ember  18,  1920,  p.  3 - "Is  It  Time  to  Advertise  “’rice  as  ’’’ell 
as  Product?" 

December  23,  1920,  p.  41  - "Then  to  Advertise  the  “'rice.” 

January  27,  1921,  . 41  - ”B  hasize  Pric  s Mm;  Sell  3 ent . 1 


49 


o uary  2/ , 1921,  p«  114  - "Would  Advert i sed  Priced  Help  Break 
the  (Strike?” 

February  10,  1921,  p.  41  - "V  ' advertising  Means  tc  he.” 
February  17,  1921,  p.  170  - "Price  Advertising  on  Increase." 
April  23,  1921,  p.  57  - "Your  Prices  to  he." 

...ay  26,  1221,  p.  141  - "Pee s a Quality  Article  Suffer  Loss  of 
Dignity  Then  Priced?" 

Judicious  Advert i sing : 

June,  1920,  p.  61  - "Questionnaire  Investigation  Tests  Efficiency 
o f Ad v e r t i s i r.g . " 


